Author: Lisa Richwine
LOS ANGELES (Reuters) – Netflix Inc. has raised its monthly subscription price by $ 1 to $ 2 in the U.S. plan, the company said Friday, to help pay for new programming to compete in the crowded TV market.
A standard plan that allows two simultaneous streams costs $ 15.49 per month, up from $ 13.99 in the United States.
Prices also rose in Canada, where the standard plan rose to C $ 16.49 from C $ 14.99.
Shares on Netflix (NASDAQ 🙂 rose nearly 3% to $ 533.84 on Nasdaq after Reuters reported a rise in prices.
The rises, the first in these markets since October 2020, immediately came into effect for new customers. Existing members will see new prices in the coming weeks when they receive their monthly bills.
“We understand that people have more entertainment opportunities than ever before and we are committed to providing an even better experience for our members,” a Netflix spokesperson said.
“We are updating our prices so that we can continue to offer a wide range of quality leisure options. As always, we offer a range of plans so that members can choose the price that suits their budget,” the spokesperson added.
The world’s largest streaming service faces the biggest competition ever from companies that want to attract viewers to online entertainment. Walt Disney (NYSE 🙂 Co., AT&T Inc. (NYSE:) ‘s WarnerMedia, Amazon.com Inc (NASDAQ 🙂 and Apple Inc (NASDAQ 🙂 are among its rivals pouring billions into new programming.
Netflix said it will spend $ 17 billion on programming in 2021. The company has not announced any expenses for 2022.
The US price of Netflix’s premium plan, which allows for four plays and ultra HD playback at the same time, rose $ 2 a month to $ 19.99. For Netflix’s basic plan, with a stream, the cost went up by $ 1 to $ 9.99 per month.
In Canada, the premium plan increased by C $ 2 to C99.99, and the basic plan did not change to C $ 9.99.
The United States and Canada are Netflix’s largest region in September 2021 with 74 million streaming customers. 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 latest subscriber collections have come from abroad.
Netflix’s subscriber growth slowed in the wake of the COVID-19 pandemic, but was revived with the help of the global “Squid Game” phenomenon, the South Korean dystopian thriller that premiered in September. Global subscriptions totaled $ 213.6 million.
The company’s next subscriber report will be on Thursday when Netflix releases its quarterly earnings. Analysts expect company to report 8.5 million new registrations from October to December Thomson Reuters (NYSE 🙂 I / B / E / S data, bringing its global subscriber base to 222 million.
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