Yukon Weekly

Netflix has raised its monthly subscription prices in the United States and Canada

Netflix increases subscription rates in the United States and Canada

Key takeaways:

  • The standard policy in the United States, which allows for two simultaneous streams, is now $15.49 per month, up from $13.99 previously.
  • Netflix has gained subscribers despite previous price increases, indicating that its subscribers are willing to pay higher prices.

Netflix Inc raised its monthly subscription cost in the United States by $1 to $2 per month, based on the plan to assist in paying for the new programming and compete in the crowded streaming TV market, the company announced on Friday.

In the United States, the standard policy, which enables 2 simultaneous streams, is now $15.49 per month, up from $13.99 previously.

Prices in Canada also increased, with the standard plan rising to C$16.49 from C$14.99.

Netflix’s stock rose nearly 3% to $533.84 on Nasdaq after Reuters broke the news of the price hikes.

Netflix Inc raised its monthly subscription cost in the United States by $1 to $2 per month, based on the plan to assist in paying for the new programming and compete in the crowded streaming TV market, the company announced on Friday.

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In the United States, the standard policy, which enables 2 simultaneous streams, is now $15.49 per month, up from $13.99 previously.

Prices in Canada also increased, with the standard plan rising to C$16.49 from C$14.99.

After Reuters broke the story of the price hikes, Netflix’s stock rose nearly 3% to $533.84 on Nasdaq. They ended the day at $525.69, up 1.3 percent.

Companies looking to attract watchers to online entertainment are putting pressure on the world’s largest streaming service, which is facing the most competitive it has ever faced. Among the companies investing strongly in new programming are Walt Disney Co, AT&T Inc’s WarnerMedia, Amazon.com Inc, and  Apple Inc.

According to Evercore ISI analyst Mark Mahaney, Netflix has gained customers despite previous price increases, indicating that its subscribers are willing to accept higher prices.

“This demonstrates Netflix’s pricing power,” Mahaney explained.

Netflix previously stated that it planned to spend $17 billion on programming in 2021. The company has not yet revealed its spending plans for 2022.

Netflix’s premium scheme, which allows for four simultaneous streams and ultra HD streaming, has been raised by $2 to $19.99 per month in the United States. Netflix’s basic plan, which includes one stream, has increased in price by $1 to $9.99 per month.

Netflix increases subscription rates in the United States and Canada
Netflix increases subscription rates in the United States and Canada. image from Moneycontrol

The premium plan in Canada increased by $2 to C$20.99, while the basic plan remained at C$9.99.

Netflix’s standard U.S. plan now costs as much as competitors, at $15.49 per month. HBO Max, which AT&T Inc, is offering a 12-month $11.99-per-month deal.

Disney+ from Walt Disney Co. costs $7.99 per month or $79.99 per year.

With 74 million streaming consumers as of September 2021, the United States and Canada are Netflix’s largest regions. In the 3rd quarter of 2021, the region accounted for almost 44% of the company’s revenue, or $3.3 billion.

The majority of the company’s latest subscriber growth has come from outside the United States.

Netflix’s subscriber growth slowed after a surge early in the COVID-19 pandemic, but it rebounded in September thanks to the global phenomenon “Squid Game,” a dystopian thriller from South Korea. The total number of subscriptions in the world has reached 213.6 million.

When Netflix reports quarterly earnings on Thursday, it will release its next subscriber report. According to Thomson Reuters I/B/E/S data, analysts predict the company will report 8.5 million new sign-ups from October to December, bringing its global subscriber base to 222 million, according to Thomson Reuters I/B/E/S data.

Source-CTV News

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