Netflix upping US, Canada prices with competition growing

  • FILE - This June 24, 2015, file photo, shows the Netflix Apple TV app icon  in South Orange, N.J. Netflix is raising prices for its video streaming customers in the U.S. and Canada, less than a year and a half since its last price increase, as competition from other streaming services increases.

    FILE - This June 24, 2015, file photo, shows the Netflix Apple TV app icon in South Orange, N.J. Netflix is raising prices for its video streaming customers in the U.S. and Canada, less than a year and a half since its last price increase, as competition from other streaming services increases. Associated Press

 
 
Updated 1/15/2022 8:47 AM

NEW YORK -- Netflix is raising prices for its video streaming customers in the U.S. and Canada, less than a year and a half since its last price increase, as competition from other streaming services increases.

The Los Gatos, California, company said Friday that prices are going up by $1 to $2, depending on the plan. The 'œstandard' plan that most people take is increasing by $1.50, to $15.50. The Canadian version is going up by the same amount in local currency, to $16.50 Canadian dollars.

 

Price increases are becoming more of a regular feature at Netflix, which is facing saturation in the U.S. market. Of Netflix's 213.5 million subscribers, some 74 million are in the U.S. and Canada. It got an influx of global subscribers early in the pandemic, but is investing in video games as it looks beyond movies and TV for growth.

In the U.S., Netflix's most expensive plan is increasing by $2, to $20; its basic plan is up $1, to $10. The plans vary based on variables like 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 out DVDs in a service that requires a separate plan.

The price increase is effective as of Friday. Netflix will tell customers by email and inside the Netflix app before the new price is applied to them. Customers in New York, Alabama and Louisiana also got hit with a new local sales tax bill, which Netflix says was because of the addition of video games to the service.

Raising prices carries the risk that people will cancel. Netflix remains the dominant U.S. streaming service, but others, such as HBO Max and Disney+, have increased in popularity.

Netflix shares gained in late trading after news of the price increase came out. The stock closed up $6.49, or 1.3%, to $525.69. The company reports its fourth-quarter financial results Thursday.

0 Comments
                                                                                                                                                                                                                       
 
Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.