MUMBAI: Is Netflix feeling the heat of well-funded competitors? The king of OTT platforms is increasing its US prices for the first time since 2017. The hike in subscription rate will be applied also to subscribers in Latin American and the Caribbean, where Netflix bills in US dollars. The move comes at a time when Disney is gearing up for its streaming service launch and NBC has just entered the market.

The move is aimed at easing a large, debt-fueled investment in new films, series and documentaries this year. According to media reports, company executives are looking for more money to pay escalating content bills.

The most popular subscription plan will see largest hike costing $13 a month, up from $11. Despite the hike, it costs lesser than HBO, whose streaming service charges $15 per month. The cheapest subscription will run $8.99, up from $7.99. The change in subscription will be effective for new customers immediately and for existing customers it will be rolled out during the next three months.

“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company said in a statement.

Wall Street put its faith on the move as the company’s stock surged $21.70 to finish at $354.64 on Tuesday, its highest closing price in nearly three months. It shows that investors believe the price increase won’t significantly slowdown Netflix’s subscriber growth.