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Netflix raises prices in the US and Canada, stock prices skyrocket

Netflix CEO Reed Hastings will speak at the LG Press Event at the 2014 International CES Mandalay Bay Convention Center on January 6, 2014 in Las Vegas, Nevada.

David Becker | Getty Images

Netflix has raised the monthly price of its streaming service in the US, raising its share price by more than 2% during trading on Friday.

According to the Netflix website, the monthly fee for the basic plan has increased from $ 1 to $ 9.99, the standard plan has increased from $ 13.99 to $ 15.49, and the premium plan has increased from $ 17.99 to $ 19.99. Prices in Canada have also risen.

A Netflix spokesperson confirmed the change. “We are updating prices so we can continue to offer a variety of quality entertainment options,” a spokeswoman said in a statement.

Netflix has been raising prices over the past few years and is part of the company’s long-term strategy. Netflix previously raised prices for US customers in 2019 and 2020.

Wall Street has relied on Netflix to raise prices as customer growth slows. The Netflix price increase also reflects the company’s confidence that the plan is well-established in the customer’s life and that the price increase will not cancel or cancel the customer.

Netflix said on Friday that customers would receive an email about the price increase 30 days before they saw the price increase.

Netflix is ​​facing more competition than ever, especially with new streamers such as Disney +, HBO Max, Amazon’s Prime Video, and Apple TV +. According to Netflix, there were more than 213 million subscribers worldwide last fall, far more than new rivals. As a result, Netflix says it has invested heavily in the production of content for its service and expects to spend $ 17 billion on content in 2021.

Netflix reports next week’s quarterly earnings.

Correction: Netflix pricing changes will affect customers in the US and Canada. Affected areas were incorrectly listed in the headings of earlier versions of this article.

Netflix raises prices in the US and Canada, stock prices skyrocket

Source link Netflix raises prices in the US and Canada, stock prices skyrocket

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