Netflix hikes monthly subscription price by $1 for new customers

Streaming video service Netflix is raising the price of one of its main pricing packages by $1 a month for new customers in Canada and the U.S.

The company's cheapest option, which costs$7.99 a month for one person, can't be shared and doesn't offer high-definition video, will be unchanged. But the next level up, which currently costs $8.99 a month for HD capability and the ability to screen on two devices at the same time, will go up by $1 to $9.99 a month.

The company also has a premium plan for $11.99 a month that allowed the account to be shared among four devices at once. That pricing plan isn't affected by Thursday's news, either.

Although the company stopped breaking down Canadian subscription numbers several quarters ago, Netflix currently has more than 65 million customers worldwide. The company has made huge gains in market share first by buying the rights to existing television shows, but has recently branched into the expensive business of producing their own shows and movies.

That costs a lot more to do, so the company is feeling the pinch on the production side.

"To continue adding more TV shows and movies including many Netflix original titles, we are modestly raising the price for some new members in the U.S., Canada and Latin America," Netflixtold CBC News in an emailed statement.

The company also says anyone currently enrolled in the middle tier will get to stay at the old price of $8.99 a month for a year "as a thank you."

This isn't the first time Netflix has hiked prices. Previously, all streaming customers paid the base price of $7.99 before the company added different tiered options in May 2014.