The new prices will take effect starting immediately for new members while current members will be notified that their subscription is going up as it rolls out over the next few months.
"We understand people have more entertainment choices than ever and we're committed to delivering an even better experience for our members," a Netflix spokesperson said in a statement. "We're updating our prices so that we can continue to offer more variety of TV shows and films."
The spokesperson added that Netflix offers "a range of plans so that people can pick a price that works best for their budget."
Netflix's price hike, which was first reported by The Verge, is not a huge surprise. Netflix spends billions on content, and this is a way to boost revenue as the "outlook for subscriber growth is substantially slower in the future than the past," according to Bernie McTernan, a senior analyst at Rosenblatt Securities.
"The price increase was a matter of when not if," McTernan told CNN Business. "It shows they think people will be willing to pay more for the service as the pandemic disrupts content production thus making their vast library more valuable."
The news comes a week the company posted slowing growth in new subscriptions and lower-than-expected profits. This came after Netflix had a huge 2020 because of people being stuck at home during the coronavirus pandemic.
Netflix was asked about raising prices during its earnings call last week.