The Netflix Price Increase Won't Be Its Last

The Netflix Price Increase Won't Be Its Last

Netflix (NASDAQ: NFLX) subscribers in the United States will probably see an increase in their monthly bill within the next few months. The streaming video on demand leader announced another price increase for its most popular plans. Customers on the $9.99 per month plan will soon pay $10.99. $11.99 per month subscribers will pay $13.99. Those using its $7.99 budget option won't see an increase.

This is Netflix's third price increase for U.S. subscribers in the last three and a half years. With CBS's Showtime over-the-top service priced at $11 per month, and Time Warner's (NYSE: TWX) HBO Now priced at $15 per month, Netflix appears to still have room to increase its pricing further. What's more, demand for Netflix is increasingly inelastic as it grows its slate of critically acclaimed originals and more consumers cut the cord and rely on streaming for television entertainment.

Image source: Netflix.

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Source: Fool.com