Netflix Raises Subscription Prices for US And Canada
Amid a drop in the share prices significantly, Netflix has raised its monthly subscription price for the United States customers by up to $2 based on the plans. The streaming TV market is now crowded and it stated customers need to pay more for new programming. The standard plan now costs $15.49 a month instead of $13.99.
Netflix has simultaneously raised the monthly subscription price in Canada and the standard plan in the country now costs C$16.49 instead of C$14.99.
However, the new price plans have been welcomed by the investors and shares witnessed a gain in value by about 3 percent. The prices have increased for the first time since October 2020. The changed prices will immediately be applicable for new customers while the existing subscribers will find the new prices in their monthly bills.
Netflix spokesperson said it is understood that people now have more choices as the smart TV market has become competitive with more options and the company is committed to delivering a better experience. The increase in prices will help to offer a variety of entertainment options.
The main rivals of Netflix include Amazon, Apple, WarnerMedia, AT&T Inc and Walt Disney Co. The companies are simultaneously trying to attract more viewers to their online entertainment platforms. However, it is evident that Netflix has the power of pricing as it has added customers despite price increases earlier.
The company earlier disclosed to spend about $17 billion in 2021 on programming. It is yet awaited what spending amount it budgets for 2022.
The premium plan has been increased by $2 and it facilitates four streams simultaneously and in ultra HD quality. It now costs $19.99 a month. The basic plan witnesses an increase of $1 and now costs $9.99 a month in the US. The standard plan costs $15.49 a month and it is more than the competitors.