Netflix has raised its monthly price for new subscribers by $1 to $8.99, marking its first price increase in three years. CEO Reed Hastings recently announced that a price increase would likely be necessary to meet the rising costs of movies and TV shows. The video streaming service introduced a new $7.99 plan for subscribers not concerned with high-definition or the ability to stream programs on multiple devices, while a $11.99 premium plan lets users stream shows to four devices at once.

“In order to continue adding more movies and TV shows, we are increasing our price from $7.99 to $8.99 for new members,” explained Friday’s email to current customers. “As a thank you for being a member of Netflix already, we guarantee that your streaming plan and price will not change for two years.”

“The increase, amounting to almost 13 percent, is effective immediately worldwide, said Jonathan Friedland, a Netflix spokesman. The change may be greater in some countries because of currency effects, he said. Existing customers, in addition to avoiding the price increase for now, keep the ability to watch on two devices at once,” reports Bloomberg. “The new $7.99 plan was designed to help consumers who worry about mobile and home broadband data caps imposed by Internet service providers, Friedland said.”

The limited $7.99 plan could potentially increase revenue by reducing the sharing of accounts during peak hours.

Since the company split its DVD-by-mail business from its streaming service in a controversial 2011 move, it “has invested in more exclusive content from studios such as Walt Disney Co. and DreamWorks Animation SKG Inc., and in originals series such as ‘Orange Is The New Black’ and ‘House of Cards,'” notes the article.