Streaming firm says increases will let it spend more on shows as it looks to see off Disney+

Netflix is to raise prices for UK subscribers by up to 20% as it looks to invest more in programmes ahead of the arrival of deep-pocketed rival Disney’s eagerly anticipated service later this year.

The streaming company, which has not raised prices in the UK since 2017, is increasing the cost of a standard plan by £1 to £8.99 and premium by £2 to £11.99. The price of a basic plan remains unchanged at £5.99.

The basic plan allows viewing on a single device and only in standard definition. The standard subscription, which the vast majority of Netflix subscribers take, allows the use of two devices at the same time and high-definition viewing. A premium subscription permits viewing on up to four devices at a time, with the option of ultra-high definition.

The company, which has 10 million UK subscribers, said new customers will pay the higher rates immediately, while the increases will be implemented for existing users “over the coming weeks”.

Netflix has already raised prices in the US, as well as a number of markets in Latin America and the Caribbean that also use US dollars, with increases across western Europe also expected.

The company is looking to drive revenues from its customers, which number more than 150 million globally, as the company seeks to continue to fund its $15bn (£12bn) content budget and try to keep a cap on long-term costs and debt totalling about $30bn.

The price rises come ahead of the launch of Disney+ in the US later this year. At $6.99 a month, it will be about half the price of Netflix in the US, and will offer content including Star Wars, the Marvel superhero universe, films from the animation studio Pixar and movies such as Frozen and Beauty and the Beast.

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Netflix said that despite the price rises, it remains “great value for money compared to other options on offer in the UK”. A spokesman said the increases should be seen in context of the hundreds of millions the company has spent on UK-made content in the past few years, such as The Crown.

“We change our prices from time to time to reflect the significant investments we’ve made in new TV shows and films, as well as improvements to our product,” the spokesman said.

“We have more than 50 productions planned in the UK this year, including new seasons of Black Mirror, Sex Education and After Life. Our basic membership will remain at the same price, ensuring as many people as possible can enjoy our content.”