Prepare to dig a little deeper into your pockets as Netflix has increased the monthly rates for some of its plans. The basic plan, which previously cost $10 per month, has been raised to

$12, while the premium plan has been bumped up from $20 to $23 per month. However, the $7 monthly cost for Netflix's ad-supported plan remains unchanged.

These price adjustments have taken immediate effect, and it's the first time Netflix has raised prices in the U.S. since January 2022. Netflix stated that these price hikes are due to the additional value they offer to their members, and the starting price remains competitive when compared to other streaming services. At $6.99 per month in the U.S., it's significantly less expensive than the average cost of a single movie ticket.

The entire streaming industry is feeling economic pressures, leading to increased prices and a crackdown on password sharing, which is affecting consumers' wallets and budgets. Companies like Netflix, Disney+, Hulu, and Peacock have all recently announced price hikes.

This latest round of price increases signals the end of the era of cheap streaming. According to The Wall Street Journal, the average cost of accessing major ad-free streaming services is expected to rise by nearly 25% in about a year.

In addition to raising prices, Netflix is pursuing other strategies to generate more revenue, including stricter measures against password sharing and introducing an ad-supported tier for its streaming service.

Despite these price hikes, Netflix reported robust financial performance in the third quarter, with revenue totaling $8.54 billion, compared to $7.9 billion in the same quarter the previous year. The company's net profit increased by 20% to $1.68 billion, and it gained 8.8 million subscribers in the third quarter. Photo by 玄 史生, Wikimedia commons.