Netflix said on Thursday it is raising the monthly price of some of its streaming plans.

Shares of Netflix jumped more than 3 percent following the news.

The company’s $10/month high-definition plan now costs $11, according to changes reflected on Netflix’s subscription page. Netflix’s 4K streaming plan, which provides higher-quality content, will cost $14 per month, a $2 increase.

The changes affect new U.S. members, while existing members will be alerted of the price change on October 19 ahead of their next billing cycle. Netflix said the price change will “roll out to members over the course of the next several months.”

“From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster,” the company said in a statement.

Amazon’s most basic plan without HD streaming still costs $7.99 per month. Mashable first reported the Netflix price changes, followed by the Associated Press.

Netflix made the decision to increase the price of its plans in an effort to increase margins while it continues to spend billions creating hit original content such as “House of Cards” and “Stranger Things,” according to the Associated Press.

Netflix hiked the price of its HD streaming plan back in April 2014, from $7.99 to $9.99. Existing consumers were able to hang on to the original $7.99 pricing, but only until May 2016, when everyone was bumped up to the higher price tier. Netflix introduced a new $7.99 non-HD option for folks who wanted to save money.

CNBC’s Julia Boorstin contributed to this report.

Source: Tech CNBC
Netflix is raising prices on some plans; shares rise