Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Chesnot/Getty Images

Netflix is raising the prices for all three of its subscription tiers beginning Tuesday, Jan. 15. Shares for Netflix were up over 5% after the news broke Tuesday.

Why it matters: 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 to hike the monthly subscription prices on those users once they are hooked.

“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members."
— A Netflix spokesperson tells Axios

Details: These increases will apply to the U.S., as well as countries in Latin America and the Caribbean where Netflix bills in U.S. dollars (e.g., Uruguay, Barbados, Belize). It will exclude major markets like Mexico and Brazil.

  • The changes will be applied to all existing members over the next few months and to all new members immediately.

By the numbers:

  • The basic plan will increase from $7.99 to $8.99 per month.
  • The HD quality plan (the most popular) will increase from $10.99 to $12.99 per month.
  • The Ultra HD plan will increase from $13.99 to $15.99 per month.

Background: Netflix last raised the price of its premium subscription from $11.99 to $13.99 monthly in October 2017, which is nearly double what it was just four years ago at $7.99 per month. This is its first time raising the price for its basic plan.

  • The company has since added a lot more original programming and features to its offering, including a new TV interface and better download functionality.

Be smart: Experts say the price hikes are in response to growing competition for Netflix at home and abroad. (Case in point: NBC said just yesterday it would join a long list of networks launching a streaming service to take on Netflix in 2020.)

"[W]ith an estimated 60 million domestic subs, Netflix has over half of U.S. households. That means that future growth is most likely coming from below median income households, who are MUCH more price sensitive. They SHOULD care about competition."
— Tweet from Michael Pachter, a research analyst at Wedbush Securities

Between the lines: The streamer has had to invest significantly more money in original programming, in part because networks are beginning to yank their own content from Netflix.

  • In the U.S., networks like Turner, Disney and NBCUniversal have been increasingly pulling their programming licensing from Netflix to save it for their own streaming services that they are building to compete with Netflix.
  • French broadcasters have begun doing the same thing in order to provide their own streaming service, Salto, with exclusive content access, per VentureBeat.

The big picture: It's not just Netflix. As Axios reported last summer, most of the digital content bundles that Americans are using in the place of costly cable packages are significantly hiking their prices as they grow and hook consumers.

Go deeper: Inflation nation: The rising cost of digital TV

Go deeper

House passes $768 billion defense spending bill

Photo: Andrew Harrer/Bloomberg via Getty Images

The House approved a $768 billion National Defense Authorization Act (NDAA) for the 2022 fiscal year in a bipartisan 316-113 vote on Thursday.

Why it matters: The annual bill, which authorizes Pentagon spending levels and guides policy for the department, would require women to register for the military draft, among other provisions.

6 hours ago - Politics & Policy

Republicans’ secret lobbying

Illustration: Shoshana Gordon/Axios

The five Senate Republicans who helped negotiate and draft the $1.2 trillion bipartisan infrastructure bill have been privately courting their Republican colleagues to pass the measure in the House.

Why it matters: House GOP leaders are actively urging their members to oppose the bill. The senators are working to undercut that effort as Monday shapes up as a do-or-die moment for the bipartisan bill.

CBC members nix border visit

A Haitian migrant carries a toddler on his shoulders today as he crosses the Rio Grande River. Photo: Pedro Pardo/AFP via Getty Images

Several members of the Congressional Black Caucus weighed visiting the U.S.-Mexico border this week to investigate the conditions faced by Haitian migrants and protest allegations of inhumane treatment by U.S. agents.

Why it matters: It's a thorny proposition both in terms of timing and messaging. Going assures a new wave of negative headlines for President Biden amid sinking popularity. And with congressional deadlines in the coming days over infrastructure, a possible government shutdown and debt-limit crisis, Democrats can't afford to lose any votes in the House.