Netflix Is Raising Prices in the U.S. The higher prices will apply to new members immediately.
The battle between streaming giant Netflix and its many competitors continues — and this time it comes with a higher price tag for customers in the U.S. Reuters reports that Netflix Inc. has increased the price of its monthly subscription by $1 to $2 per month depending on the plan. On Friday, the company said the new pricing will help pay for new programming to compete with other streaming services.
Netflix has upped the prices on all of its U.S. plans. The streaming service's basic plan, which allows for one stream, increased by $1 to $9.99; its standard plan, which supports two simultaneous streams, climbed to $15.49 from $13.99; and its premium plan, which permits four simultaneous streams plus streaming in ultra HD, rose $2 to $19.99.
Canadian customers also saw price increases. The basic plan (C$9.99) was unaffected, but the standard plan was raised from C$14.99 to C$16.49, and the premium option jumped C$2 to C$20.99.
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According to the company's site, the higher prices will apply to new members immediately, while existing members will be notified via email 30 days before their price changes.
"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 told Reuters. "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."
Netflix had announced it would spend $17 billion on programming in 2021 but has yet to disclose spending for 2022.
Despite price increases in the past, Netflix has continued to attract new members (adding a record 37 million subscribers in 2020), even as it faces more competition than ever before. Some of its top competitors include Amazon Prime Video ($8.99 per month), Hulu (starting at $6.99 per month) and Disney+ ($7.99 per month).
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The company's next subscriber report will be released on Thursday along with its quarterly earnings. Per Thomson Reuters I/B/E/S data, analysts predict the company will report 8.5 million new customers from October through December, for a total global subscriber base of 222 million.