Netflix increases prices in the United States and Canada with growing competition
NEW YORK (AP) — Netflix is raising prices for its video streaming customers in the United States and Canada, less than a year and a half since its last price increase, as competition from other streaming services increases.
The Los Gatos, Calif., company said on Friday that prices were up $1 to $2, depending on the plan. The “standard” plan that most people choose increases by $1.50 to $15.50. The Canadian version increases by the same amount in local currency, to 16.50 Canadian dollars.
Price hikes are increasingly becoming a regular feature of Netflix, which is dealing with saturation in the US market. Of Netflix’s 213.5 million subscribers, some 74 million are in the United States and Canada. It received an influx of global subscribers at the start of the pandemic, but is investing in video games as it looks beyond movies and TV to expand.
In the US, Netflix’s most expensive package increases by $2, to $20; its basic plan is up from $1 to $10. Plans vary based on variables such as the number of screens users can watch Netflix on at the same time and the number of phones or tablets that can have downloads. The company still mails DVDs as part of a service that requires a separate plan.
The price increase has been effective since Friday. Netflix will notify customers via email and in the Netflix app before the new price is applied to them.
Raising prices carries the risk of people canceling. Netflix remains the dominant American streaming service, but others, such as HBO Max and Disney+, have grown in popularity.
Shares of Netflix gained late in the session after the price hike news broke. The stock closed up $6.49, or 1.3%, at $525.69. The company released its fourth quarter financial results on Thursday.
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