The company’s Standard plan for US users now costs $13.99 . Increases to $15.49 per month
“We are updating our prices so that we can continue to offer a variety of quality entertainment options,” a Netflix spokesperson said in a statement.
The last time the company raised the monthly prices was in October 2020. That growth hit the streaming market after Netflix lowered its third-quarter subscriber estimates that year, and the financial impact of the COVID-19 pandemic was hitting the company.
The latest increase in its monthly plans comes amid increasing competition among streaming platforms and rising programming costs. Netflix is spending more on content to attract and retain subscribers because viewers have more content than ever to choose from thanks to Walt Disney Co.
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Netflix’s move to raise prices in the US and Canada contrasts with that in India. In that key market for global growth, Netflix cut its price last month to help it better compete with streaming services from Amazon and Disney.
For consumers, the high cost for a Netflix subscription is the latest example of rising prices. Wednesday’s data showed inflation as measured by the US consumer-price index rose 7% in December, its fastest pace since 1982.
Netflix is scheduled to release fourth quarter results on Thursday. In October, the company said its fourth-quarter offerings would result in higher content spend and lower margins. Analysts polled by FactSet expect it to report earnings of 83 cents per share on $7.71 billion in revenue.
Shares of Netflix rose nearly 1.3% to $525.69 on Friday. According to FactSet, the stock is up about 5% over the past 12 months.