(New York) Netflix is raising prices for customers of its platform in the United States and Canada, less than a year and a half since its last price hike, as competition from other video-on-demand services increases.
Posted at 7:01 p.m.
The Los Gatos, Calif.-based company said Friday that prices were going up by one to two dollars, depending on the plan. The “standard” plan that most people choose increases by US$1.50 to US$15.50. The Canadian version increases by the same amount in local currency, to C$16.50.
Price hikes are increasingly becoming a regular feature of Netflix, which is dealing with saturation in the US market. Of Netflix’s 213.5 million subscribers, some 74 million are in the United States and Canada. The platform received an influx of subscribers around the world at the start of the pandemic, but is investing in video games as it seeks sources of growth outside of movies and TV.
In Canada, the price for the standard plan goes from $14.99 to $16.49, while the premium plan costs $20.99 instead of $18.99. Only the price of the basic agreement remains at $9.99.
In the US, Netflix’s most expensive package increases by $2 to $20; its basic plan is up from $1 to $10.
Plans change based on variables such as the number of screens users can watch Netflix on at the same time and the number of phones or tablets that can have downloads. The company still mails DVDs as part of a service that requires a separate plan.
The price hike was put into effect on Friday. Netflix will notify customers via email and in-app before the new rate is applied to them.
Netflix had already increased its prices in Canada in October 2020, with an increase of $1 for the standard plan and $2 for the premium. In addition, last July, the company added GST/QST charges to its invoices.
The video-on-demand service debuted in Canada in 2010, with a $7.99 subscription. It was the first country outside the United States to benefit from the platform.
Raising prices carries the risk of people canceling their subscriptions. Netflix remains the dominant American streaming service, but others, such as HBO Max and Disney+, have grown in popularity.
Shares of Netflix gained ground in late trading after the price hike news. The stock closed up $6.49, or 1.3%, at $525.69. The company released its fourth quarter financial results on Thursday.