Netflix is raising its price to pay for all of that original programming

You're going to pay more for Netflix within the next three months, as the TV streaming service seeks to reinvest in its original programming and ward off new competition.

The cheapest Netflix plan in the US is now $9 (up from $8), while its HD Standard plan (the most popular) will cost $13, up from $11, according to CNBC. The 4K Premium plan is also going up in price, to $16 from $14.

This marks Netflix's biggest price increase in its 12 years, when it first became an online streaming juggernaut, and it'll take effect immediately for new sign-ups. Existing customers will still pay the original prices for the next three months, before their subscriptions rise as well.

More competition, more money

There are two main reasons Netflix is raising its price. First, it's continuing to invest in expensive original programming. It spends around $13 billion on it.

Second, it has fierce competition, and it's only going to more difficult to dominate the market in 2019. In addition to HBO, Hulu, and Amazon Prime, new streaming options will debut soon, including Disney+ and a brand new streaming service from NBCUniversal announced this week.

Of course, with over 130 million subscribers, Netflix doesn't have too much to worry about if a few subscribers rebel against today's price hike. And it'll have a lot to gain by adding $2 a month to everyone's bill.

Matt Swider