Netflix is raising prices for its video streaming customers in the US and Canada, less than a year and a half since its last price increase, as competition from other streaming services increases.
The company Los Gatos, California, said Friday that prices are going up by $ 1 to $ 2, depending on the plan. The “standard” plan that most people adopt increases by US $ 1.50, to US $ 15.50. The Canadian version goes up by the same amount in local currency, to $ 16.50.
Price increases are becoming more of a regular feature at Netflix, which has to do with saturation in the US market. Of Netflix’s 213.5 million subscribers, about 74 million are in the U.S. and Canada. It received an influx of worldwide subscribers early in the pandemic, but is investing in video games because it looks beyond movies and TV to growth.
In Canada, the price of the standard plan jumps to $ 16.49 from $ 14.99, while the premium plan now runs at $ 20.99, up from $ 18.99. The base plan will remain the same at $ 9.99.
In the US, Netflix’s most expensive plan increases by US $ 2, to US $ 20; his base plan is up US $ 1, to US $ 10.
Plans vary based on variables such as the number of screens that Netflix users can view at a time and the number of phones or tablets that can have downloads. The company still sends out DVDs in a service that requires a separate plan.
The price increase applies from Friday. Netflix will notify customers via email and within the Netflix app before the new price is applied to them. Customers in New York, Alabama and Louisiana have also been hit with a new local sales tax bill, which Netflix says was due to the addition of video games to the service.
Earlier in October 2020, Netflix increased subscription costs in Canada, increasing the standard plan by $ 1 to $ 14.99 and the premium plan by $ 2 to $ 18.99.
However, in July 2021, the company called in Canada Day by adding GST and HST costs to subscribers’ accounts.
Netflix debuted in Canada in 2010, and costs subscribers only $ 7.99 per month. At the time, it was the first country to see the network launched outside the US
Increasing prices brings the risk of people canceling. Netflix remains the dominant American streaming service, but others, such as HBO Max and Disney +, have increased in popularity.
Netflix shares gained traction in late trading after news of the price increase came out. The stock closed at $ 6.49, or 1.3%, at $ 525.69. The company reported its fourth-quarter financial results on Thursday.
Tali Arbel, Associated Press