Netflix has increased the monthly price of most of its subscription plans in the United States and Canada as the streamer seeks to generate more revenue from a slower-growing customer base.
The price increases, announced on Friday, will see Netflix’s Standard plan – its most popular tier, which provides two simultaneous HD streams – increase by $1.50, to $15.49 per month.
Additionally, Netflix’s Premium plan (with four streams and offering 4K Ultra HD content) is up $2, from $17.99 to $19.99 per month, for US customers. The basic plan (with a single non-HD stream) goes up from $1 to $9.99 per month.
A notice on Netflix’s customer support site says the new prices apply to new members and will gradually take effect for all current members. “Current members will receive an email notification 30 days prior to the price change, unless they change their plan,” the post read.
The company also raised prices in Canada, where the Standard plan increased by $1.50 (CAD) to $16.49 (CAD), and the Premium plan increased by $2 (CAD) to $20. $99 (CAD)/month. In Canada, the basic plan remained unchanged at $9.99 (CAD)/month.
“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 representative said in a statement, using the same language the streamer last said. increased prices. The spokesperson added: “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.
Netflix’s stock rose more than 3% on the announcement of the price increases, before closing the day +1.25% at $525.69/share. The stock has fallen 13% in the past month as investors worried about intensifying competition in the streaming wars.
The increases are the first for US and Canadian customers since October 2020, and the third increase in the last three years for Netflix’s standard HD plan – which, at $15.49/month, is now above the regular level without advertising from HBO Max at $14.99/month. . The higher rates come as the company has seen subscriber growth slow significantly in its UCAN (United States and Canada) region over the past year.
In the third quarter of 2021, Netflix only attracted 70,000 streaming subscribers in the United States and Canada. For the 12 months ended September 30, it gained around 940,000 UCAN to stand at 74.0 million (+1.3% year-on-year), compared to a net increase of 18, 1 million worldwide (+9.4% year-on-year).
Netflix is expected to release its fourth quarter 2021 results next Thursday (January 20) after the market closes.