“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,”
(CMR) Netflix streaming media company issued a statement on Friday that it will be raising its prices on plans in the United States and Canada ahead of issuing its fourth-quarter earnings two consecutive sluggish quarters for the company. This is the second increase since October 2020.
The price increase will help to pay for new programming and to compete in the crowded streaming TV market.
The standard plan which allows for two simultaneous streams will increase by $1.50 to $15.49 with the basic plan going up by $1 to $9.99. The premium allows for four streams at a time and streaming in ultra HD will increase $2 to $19.99.
In Canada, the price for Netflix's standard plan also went up $1.50 to $16.49 Canadian. The premium plan went up by $2 to $20.99 Canadian. Its basic plan was unchanged.
Netflix shares went up almost 3% on the Nasdaq after Reuters broke the news on the price hikes on Friday.
The company over over 213 million subscribers worldwide. The company said it has 74 million members in the US and Canada, but that growth in those regions has become saturated.
Netflix will spend $17 billion on programming in December 2021.