Netflix raises prices for standard and premium plans in the US and Canada
Netflix Inc. has raised its monthly subscription price by US$1 to US$2 per month in the United States under the plan, the company announced on Friday, to help pay for new programming to compete in the crowded streaming market.
The standard plan, which allows two simultaneous streams, now costs US$15.49 per month, compared to US$13.99 in the US.
Prices have also increased in Canada, where the standard plan has gone from $14.99 to $16.49.
The price increases – the first in these markets since October 2020 – took effect immediately for new customers. Existing members will see the new prices in the coming weeks when they receive their monthly invoices. Price increases have not been previously reported.
Increased costs to create new content
“We understand that people have more entertainment choices 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 variety of quality entertainment options. As always, we offer a range of plans so members can choose a price that suits their budget,” added the spokesperson.
The world’s biggest streaming service faces the toughest competition from companies looking to lure viewers into online entertainment. Walt Disney Co., AT&T Inc.’s WarnerMedia, Amazon.com Inc. and Apple Inc. are among rivals investing billions in new programming.
Netflix had said it would spend US$17 billion on programming in 2021. The company did not disclose its spending for 2022.
The US price of Netflix’s premium plan, which allows four streams at once and ultra-HD streaming, has been increased by $2 to $19.99 per month. For Netflix’s basic plan, with one stream, the cost has increased by $1, to $9.99 per month.
In Canada, the premium plan increased by $2 to $20.99, and the basic plan remained unchanged at $9.99.
The United States and Canada are Netflix’s largest region, with 74 million customers as of September 2021. Most of the company’s recent growth has come from overseas.
Netflix subscriber growth slowed after a boom at the start of the COVID-19 pandemic, but rebounded with the help of the global phenomenon Squid game, a South Korean dystopian thriller released in September. Total global subscriptions reached 213.6 million.