![]() To fund its content-spending binge, Netflix has raised billions in new debt: It reported $8.34 billion in long-term debt as of Sept. The company is looking to boost top-line revenue to offset its ballooning content costs, which were projected to hit $13 billion on a gross basis in 2018. Netflix shares rose up as much as 6.8% in morning trading Tuesday on news of the price increases, with investors bullish on the evidence of its growing market clout. “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” a company spokeswoman said in a statement. ![]() However, the rate hikes will not take effect (for now) in the region’s biggest markets, Mexico and Brazil. ![]() dollars, including Uruguay, Barbados, and Belize. Netflix’s price increases also will extend to about 40 countries in Latin America where it bills in U.S. Existing subscribers will be moved to the new pricing plans “over the next few months,” according to the company. The new prices, which are the biggest fee hikes in Netflix’s history, will apply to all new Netflix subscribers in the U.S. In addition, the company for the first time is hiking its Basic plan, which offers a single non-HD stream, from $7.99 to $8.99 per month (+12.5%). The Premium plan, which provides up to four Ultra HD streams, is increasing from $13.99 to $15.99 per month (up 14.3%). Netflix’s most popular plan, the Standard tier that offers two HD streams, is increasing 18%, from $10.99 to $12.99 per month. Netflix is flexing its pricing-power muscle to kick off 2019 - hiking fees for all streaming-video plans for customers in the U.S.
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