Netflix is raising their rates for most of their customer base.

MSNBC reports that the streaming service Netflix will raise the rates on their basic package from $10 to $11. The next tier which offers 4K video will go from $12 to $14. The rate increase effects 53 million users in the United States. The new rates go into effect on October 19.

The main reason for the rate increase is to help fund their growing list of award-winning as well as wildly popular original shows.These show not only have Netflix competing with HBO for the most critically acclaimed shows, they have also doubled the companies subscribers in the past 4 years.

These shows like 'House of Cards, 'Orange is the New Black', and 'Stranger Things' cost Netflix almost 6 billion a year to produce. But with Hulu, Amazon, YouTube and, Apple TV for the rights to future shows and movies. The need to be competitive is greater than ever.

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