Netflix Inc has raised its monthly subscription price in the US from $ 1 to $ 2 per month as planned to help pay for new shows to compete in the crowded streaming TV market, the company said Friday.
The standard plan that allows for two simultaneous streams is currently from $ 13.99 in the US to $ 15.49 per month.
Prices also rose in Canada, with the standard plan rising from $ 14.99 to $ 16.49.
Netflix shares rose nearly 3% on Nasdaq to $ 533.84 after Reuters announced news of price increases. They closed 1.3% higher at $ 525.69.
The first increase in these markets since October 2020 was immediately effective for new customers. Existing members will see the new price in the coming weeks when they receive their monthly invoice.
A Netflix spokeswoman said, “We understand that people have more entertainment options than ever before and are committed to providing a better experience for our members.”
“We are updating prices so that we can continue to offer a variety of quality entertainment options. As always, we offer a variety of plans to help members choose the price that fits their budget. “The spokesperson added.
The world’s largest streaming service faces the most competition ever with companies trying to attract viewers to online entertainment. Walt Disney Co, AT & T Inc’s WarnerMedia, Amazon.com Inc, and Apple Inc are one of the rivals that are pouring billions of dollars into new programming.
According to Evercore ISI analyst Mark Mahaini, Netflix is adding customers despite previous price increases, showing that members are willing to accept higher costs.
“This is proof that Netflix has pricing power,” Mahaney said.
Netflix said it will spend $ 17 billion on programming in 2021. The company has not disclosed its 2022 spending.
The US price of Netflix’s premium plan, which allows you to stream four streams at once and in Ultra HD, has been raised from $ 2 per month to $ 19.99. With Netflix’s base plan, one stream cost $ 9.99 per month, up $ 1.
In Canada, the premium plan has increased by C $ 2 to C $ 20.99, and the base plan has not changed at C $ 9.99.
At $ 15.49 a month, Netflix’s standard US plan is more expensive than its competitors. HBO Max, owned by AT & TInc, currently offers a $ 11.99 / month promotion for 12 months.
Walt DisneyCo’s Disney + is priced at $ 7.99 per month or $ 79.99 per year.
The United States and Canada are Netflix’s largest regions with 74 million streaming customers as of September 2021. The region accounted for nearly 44% of the company’s revenue in the third quarter of 2021, or about $ 3.3 billion.
Most of the company’s recent subscriber numbers are from abroad.
Netflix subscriber growth slowed from the early boom of the COVID-19 pandemic, but with the help of the Korean dystopian thriller global phenomenon “Squid Game” released in September. I have recovered. Worldwide subscriptions have reached 213.6 million.
The company’s next subscriber report is scheduled for Thursday when Netflix announces quarterly revenue. Analysts said the company reported 8.5 million new registrations between October and December, with 222 million subscribers worldwide, according to Thomson Reuters I / B / E / S data. I’m predicting.
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