Neon is hiking its prices.

The streaming service has revealed in an email to customers it will be increasing its prices from August 15.

The email sent to customers read, "From 15 August, the price of Neon's monthly standard plan is increasing to $17.99 per month, and our annual plan is increasing to $179.99 per year."

"Why? So that we can continue to bring you premium and exclusive shows like House of the Dragon, The Handmaid's Tale and Yellowstone, and the latest blockbuster movies."

The email then offered customers a chance to cancel their subscription before August 15, when the new billing costs will come into play.

A subscription currently costs $15.99 per month.

Neon has revealed a new basic plan as well as price increases. Photo / Neon

For subscribers who aren't able to pay the increased fee, the streaming service revealed it will be introducing an additional monthly plan called the basic plan which will cost users $12.99 per month, with a saving of $5 per month compared to its monthly standard plan.

On its website Neon said that with the new plan, "you can still access all the great TV shows and movies Neon has to offer, but your video quality and access to features including downloads, devices and profiles is reduced when compared to Neon's monthly standard plan and annual plan."

The basic plan allows users access to one screen at a time and two profiles. It will stream in SD quality, unlike the standard plan which streams in HD quality and offers two screens and five profiles.