Netflix raising prices for customers in US and Canada
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NEW YORK (AP) — Netflix is raising prices for its video streaming customers in the U.S. and Canada, less than a year and a half since its last price increase, as competition from other streaming services increases.
The Los Gatos, California, company said Friday that prices are going up by $1 to $2, depending on the plan. The “standard” plan that most people take is increasing by $1.50, to $15.50. The Canadian version is going up by the same amount in local currency, to $16.50 Canadian dollars.
Price increases are becoming more of a regular feature at Netflix, which is facing saturation in the U.S. market. Of Netflix’s 213.5 million subscribers, some 74 million are in the U.S. and Canada. It got an influx of global subscribers early in the pandemic, but is investing in video games as it looks beyond movies and TV for growth.
In the U.S., Netflix’s most expensive plan is increasing by $2, to $20; its basic plan is up $1, to $10. The plans vary based on variables like 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 out DVDs in a service that requires a separate plan.
The price increase is effective as of Friday. Netflix will tell customers by email and inside the Netflix app before the new price is applied to them. Customers in New York, Alabama and Louisiana also got hit with a new local sales tax bill, which Netflix says was because of the addition of video games to the service.
Raising prices carries the risk that people will cancel. Netflix remains the dominant U.S. streaming service, but others, such as HBO Max and Disney+, have increased in popularity.
Netflix shares gained in late trading after news of the price increase came out. The stock closed up $6.49, or 1.3%, to $525.69. The company reports its fourth-quarter financial results Thursday.
Copyright 2022 The Associated Press. All rights reserved.
Netflix upping US, Canada prices with competition growing
In the U.S., Netflix’s most expensive plan is increasing by $2, to $20; its basic plan is up $1, to $10. The plans vary based on variables like 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 out DVDs in a service that requires a separate plan.
Netflix Increases Subscription Price
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Netflix subscribers can soon expect to see a different kind of Stranger Things on their upcoming bills as the company announced a price hike for new subscriptions that will soon impact existing members.
In the US, the company said that Netflix’s basic plan, which allows for one stream on one screen at a time and does not have HD streaming, will now be charged $9.99 a month, up from $8.99.
Standard plans — which allow for users to stream on two screens at the same time — now cost $15.49 per month, an increase from $13.99, while premium plans have been pushed up to $19.99 a month.
Those rates have been set for new subscribers as of Friday, Jan. 14, while existing users can expect to see the price changes “over the coming weeks,” according to Netflix.
Current subscribers will receive an email and in-app notification 30 days in advance of when the new subscription prices will take effect in their accounts.
The price hike is also expected to impact Canadian Netflix subscribers. The last time the streaming giant raised its prices was in October 2020, impacting approximately 74 million members in the US and Canada.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members," a Netflix spokesperson said.
“We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can pick a price that works for their budget.”
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Netflix’s Price Target is Cut. A Price Hike Sends Shares Upward
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Is Netflix so powerful that it is impervious to anything negative offered by a respected financial analyst? That appeared to be the case on Friday, as shares in the dominant on-demand visual content creator and distributor rose by nearly 3% before cooling off as trading for the week neared its conclusion.
The growth came despite a notable note of wariness from MoffettNathanson Senior Analyst Michael Nathanson.
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