- Netflix on Friday raised monthly prices for its streaming service in the US and Canada.
- According to Netflix’s website, the monthly cost of the Basic plan increased from $1 to $9.99, the Standard plan increased from $13.99 to $15.49, and the Premium plan increased from $17.99 to $19.99.
- Wall Street is counting on Netflix to increase prices as subscriber growth slows.
Netflix raised monthly prices for its streaming service in the US, sending the stock up more than 2% during trading Friday.
Monthly cost of the Basic plan increased from $1 to $9.99, the Standard plan jumped from $13.99 to $15.49, and the Premium plan from $17.99 to $19.99, according to netflix website, Canadian prices have also increased.
A Netflix spokesperson confirmed the change. “We are updating our prices so that we can continue to offer a variety of quality entertainment options,” the spokesperson said in a statement.
Netflix has been raising prices over the years and this is part of the company’s long-term strategy. Netflix previously raised prices for US subscribers in 2019 and 2020.
Wall Street is counting on Netflix to increase prices as subscriber growth slows. Netflix’s price hike also reflects the company’s belief that its plans are entrenched in the lives of its customers and that they won’t be canceled or churned out because of the price hike.
Netflix said on Friday that subscribers will receive an email about the price hike 30 days before seeing the increase.
Netflix faces more competition than ever, especially from new streamers including Disney+, HBO Max, Amazon’s Prime Video and Apple TV+. Netflix said last fall it had more than 213 million subscribers worldwide, much higher than the subscription numbers of its newer rivals. As a result, Netflix has been investing heavily in producing content for its service, and said it expected to spend $17 billion On content in 2021.
Netflix reports quarterly earnings next week.
Correction: The change in Netflix’s price will affect customers in the US and Canada. The affected area was misspelled in the title of an earlier version of this article.