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ANTIOCH, CA. (JAN. 14) — Netflix Inc raised its monthly subscription price by $1 to $2 a month in the United States, depending on the plan, the company said on Friday, to help pay for new schedules to compete in the crowded streaming TV market.
The regular plan, which allows for two concurrent flows, is now $15.49 per month, up from $13.99 in the US.
Prices increased in Canada as well, with the regular plan rising to C$16.49 from C$14.99.
Netflix shares gained nearly 3 percent to $533.84 on the Nasdaq after Reuters reported rising prices. They closed 1.3% higher at $525.69.
The increases, the first in these markets since October 2020, came into effect immediately for new customers. Existing members will see the new prices in the coming weeks when they receive their monthly bills.
"We recognize that individuals have more entertainment alternatives than ever before, and we are committed to providing an even better experience for our subscribers," a Netflix representative stated.
"We're revising our fees so that we can continue to provide a diverse range of high-quality entertainment options. As always, we offer a variety of options so that members can choose a price that fits their budget "Furthermore, the representative stated.
The world's largest streaming service is facing the biggest competition of all companies looking to attract viewers to online entertainment. Walt Disney Co (DIS.N), AT&T Inc's (T.N) WarnerMedia, Amazon.com Inc, and Apple Inc (AAPL.O) are among the companies investing billions of dollars in developing new programs.
According to Evercore ISI analyst Mark Mahaney, Netflix has added subscribers despite past price rises, indicating that its members are prepared to absorb greater expenses.
"This demonstrates Netflix's pricing strength," Mahaney added.
Netflix has stated that it would spend $17 billion on programming by 2021. The expenses for 2022 were not disclosed by the company.
The U.S. price of Netflix's premium plan, which allows four streams at a time and ultra HD streaming, has been increased by $2 to $19.99 per month. For Netflix's basic plan, with streaming, the cost increased from $1 to $9.99 per month. Read the full article at Reuters.
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About me: Clarisse La Grone is a born and raised San Francisco native who's been living in the beautiful Antioch region for the past 10 years. Her passion is finding new and interesting ways to enjoy the city and its surroundings. On weekends, you can find her curating events in the Bay Area with her partner, sampling food at new and unique restaurants, making homemade kombucha, or bowling with her friends. Clarisse also enjoys writing about local businesses and finding ways to help them grow and connect with the community at Antioch Aired.
