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Illustration: Sarah Grillo/Axios

Netflix announced Thursday it will charge customers $14 for its standard monthly subscriber plan and $18 for the premium plan, the Verge reports.

The big picture: The business model behind Netflix's strategy is to accumulate as many users worldwide with as much original and licensed content as possible, and then hike the monthly subscription prices on those users once they are hooked.

  • The basic plan will remain $9 per month, per the Verge.

Between the lines: Some big entertainment companies are eyeing price hikes to make up for pandemic headwinds. Spotify hinted at its own cost increase in a Thursday earnings call and both companies gave modest Q4 guidance.

What they're saying: "We understand people have more entertainment choices than ever and we're committed to delivering an even better experience for our members," a Netflix spokesperson told CNET.

  • "We're updating our prices so that we can continue to offer more variety of TV shows and films — in addition to our great fall line up. As always we offer a range of plans so that people can pick a price that works best for their budget."

The bottom line: Generally speaking, streaming TV is getting more expensive, making it less of an affordable alternative to cable.

Editor's note: This story has been updated to reflect that Netflix's standard plan will increase by $1 and the premium plan will increase by $2.

Go deeper

Kendall Baker, author of Sports
Nov 17, 2020 - Sports

Actors Ryan Reynolds and Rob McElhenney buy a soccer team

Illustration: Annelise Capossela/Axios

Actors Ryan Reynolds and Rob McElhenney have teamed up to acquire fifth-division English soccer team, Wrexham AFC, one of the oldest clubs in the world.

Why it matters: The two actors have promised to invest at least $2.64 million and plan to use their own stardom — plus a documentary series — to promote the club globally and hopefully take it to new heights.

Tony Hsieh, longtime Zappos CEO, dies at 46

Tony Hsieh. Photo: FilmMagic/FilmMagic

Tony Hsieh, the longtime ex-chief executive of Zappos, died on Friday after being injured in a house fire, his lawyer told the Las Vegas Review-Journal. He was 46.

The big picture: Hsieh was known for his unique approach to management, and following the 2008 recession his ongoing investment and efforts to revitalize the downtown Las Vegas area.

Dan Primack, author of Pro Rata
5 hours ago - Economy & Business

The unicorn stampede is coming

Illustration: Annelise Capossela/Axios

Airbnb and DoorDash plan to go public in the next few weeks, capping off a very busy year for IPOs.

What's next: You ain't seen nothing yet.