Netflix has raised its monthly subscription price by $1 to $2 per month in the United States, depending on the plan. This will help pay for new programming to compete in the crowded streaming TV market.The standard plan, which allows for two simultaneous streams, now costs $15.49 per month, up from $13.99, in the United States. Prices also rose in Canada, where the standard plan climbed to C$16.49 from C$14.99.
The Shares of Netflix gained nearly 3% to $533.84 after Reuters broke the news of the price rises. They closed 1.3% higher at $525.69. The increases, the first in those markets since October 2020, took effect immediately for new customers. Existing members will see the latest prices in the coming weeks when they receive their monthly bills.
The spokesman said that they are updating the prices to continue to offer a wide variety of quality entertainment options. They always provide a range of plans so members can pick a price that works for their budget.The world’s most extensive streaming service faces the most competition from companies looking to attract viewers to online entertainment. Walt Disney, AT&T’s WarnerMedia, Amazon, and Apple are among the rivals pouring billions into new programming. Netflix has added customers despite prior price increases, which shows its members have been willing to accept higher costs, Evercore ISI analyst Mark Mahaney said.
Netflix had said it would spend $17 billion on programming in 2021. The U.S. price of premium plan, which enables four streams at a time and streaming in ultra HD, was increased by $2 to $19.99 per month. For Netflix basic plan, with one stream, the cost rose by $1 to $9.99 per month. In Canada, the premium plan rose from C$2 to C$20.99, and the basic plan was unchanged at C$9.99.