Netflix Raises Prices in U.S. and Canada

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Netflix hiked monthly fees for its streaming service in the United States, sending the stock up more than 3% in Friday trading.

The shares of Netflix eventually increased 1.25 percent to $525.69 on Friday.

According to Netflix’s website, the monthly cost of the basic plan increased by $1 to $9.99, the standard plan increased by $1 to $15.49, and the premium plan increased by $1 to $19.99. Prices in Canada have also risen.

The adjustment was confirmed by a Netflix official. In a statement, the spokesman added, “We’re changing our fees so that we can continue to offer a wide choice of quality entertainment alternatives.”

Netflix has raised its fees in the past few years as part of its long-term strategy. Netflix’s pricing in the United States was already hiked in 2019 and 2020.

Netflix has been expected by Wall Street to raise rates as customer growth slows. Netflix’s pricing increases also reflect the company’s belief that its plans are deeply embedded in the lives of its consumers, and that they will not cancel or churn as a result of price increases.

Customers will receive an email about the price increases 30 days before they see them, Netflix announced on Friday.

Netflix is up against more competition than ever before, particularly from newer streaming services such as Disney+, HBO Max, Amazon Prime Video, and Apple TV+. Netflix announced last October that it has over 213 million subscribers throughout the world, far more than any of its new competitors. As a result, Netflix has been substantially investing in content creation for its service, estimating that it will spend $17 billion on content in 2021.

Next Monday, Netflix will release its quarterly profits report.

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