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Netflix raising its prices by 10 percent for standard plan

Netflix raising its prices by 10 percent for standard plan

The streaming giant on Thursday raised the price of two of its memberships.

The "Standard" plan, which allows users to watch HD content on two screens at the same time, will increase from $9.99 to $10.99 per month, according to Fortune.

A basic plan that offers streaming to a single screen will remain $7.99 monthly in the US.

The price hikes come as Netflix is investing heavily in original content such as TV series "Stranger Things" and "Marvel's The Punisher".

Tests by MarketWatch staffers show there was no increase listed for customer's current plans.

Subscribers will see the price changes on their bills depending on when their next cycle comes due. Netflix said the price change will "roll out to members over the course of the next several months".

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But Netflix subscribers have rebelled against price increases in the past, most notably in 2011 when the company stopped bundling its streaming service with its DVD-by-mail service, resulting in price increases of as much as 60 percent for customers who wanted both plans. But the price increases will help Netflix continue to expand its services and improve the quality of streams for future use by consumers, as well as fund ongoing and new Netflix-exclusive projects.

Netflix posted the new prices on its website on Thursday morning. The company has committed $15.7 billion to streaming content deals - with $6 billion earmarked for 2017 alone.

Netflix rolled out a price increase previous year and there was much investor worry about potential sub declines.

While Netflix's pricing will now be higher, the company's streaming service is still cheaper than many of its competitors, including HBO Now, which offers access exclusively to that network's content for $15 a month.

Netflix and rival Amazon Prime have been pumping money into original shows to win fans and set themselves apart in an increasingly competitive bid for viewers' time.