raised the price for its monthly plans, the first such increase from the streaming platform since 2020.
The monthly cost for its basic plan for U.S. customers rose $1 to $9.99, while its standard plan increased to $15.49 from $13.99 and the premium plan to $19.99 from $17.99.
Prices for Canadian customers also increased except for the basic plan.
“We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options,” a Netflix spokesperson said in a statement.
The last time the company raised the monthly prices was October 2020. That increase followed Netflix’s missing its third-quarter subscriber projections that year as more competitors entered the streaming market and the financial impact of the Covid-19 pandemic was hitting the company.
The latest increase to its monthly plans comes amid increased competition among streaming platforms and rising programming costs. Netflix is spending more on content to attract and keep subscribers as viewers have more content than ever to choose from thanks to
Walt Disney Co.
Netflix’s move to raise prices in the U.S. and Canada contrasts with what it did in India. In that key market for global growth, Netflix cut its price last month to help it better compete with streaming services from Amazon and Disney.
For consumers, the higher cost for a Netflix subscription is the latest example of rising prices. Data on Wednesday showed that inflation as measured by the U.S. consumer-price index rose 7% in December, its fastest pace since 1982.
Netflix is set to release its fourth-quarter results on Thursday. In October, the company said its fourth-quarter offerings would result in higher content expenses and a lower margin. Analysts polled by FactSet are expecting it to report earnings of 83 cents a share on $7.71 billion in revenue.
Shares of Netflix rose nearly 1.3% to $525.69 on Friday. The stock is up about 5% over the past 12 months, according to FactSet.
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
For all the latest Technology News Click Here