>> Netflix throwing in an unsuspecting plot twist to subscribers, a price hike. The streaming service announcing Thursday rates are going up for the first time in two years. Netflix needs the money to pay for all the Hollywood content it's gobbling up, says Reuters Breakingviews columnist, Jen Saba.>> If you're a consumer, you probably don't wanna see your subscription price rise.
But for Netflix, they need to do it, because they're spending a lot on content creation.>> Here's the new monthly hit to consumers. The top tier plan, which allows streaming on up to four HD screens going to $13.99 from $11.99. The midrange subscription for two streaming devices at a time now goes to $10.99 a month from $9.99.
The basic plan remains at $7.99. But that's still cheaper than HBO Now, home to to Emmy standouts like Game of Thrones and Veep. And pretty straightforward compared to the other streaming services out there.>> All the other people, Hulu, Amazon, etc., they have confusing pricing structures too. It's not like, they have clean, you know what you're getting immediately.
Netflix is simple, they have a simple pricing structure and that can help them too.>> The price hikes will start showing up in mid-November but only in the US. Investors cheering Netflix' attempt to recoup some of the content expenses, shares rallying Thursday to an all time high.