Netflix raises prices on plans in US, Canada

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

Los Gatos, California, said Friday that prices are going up by $1 to $2, depending on the plan. The “Standard” plan that most people take increases $1.50 to $15.50. The Canadian version rises by the same amount in the local currency, to C$16.50.

Price increases have become a regular feature of Netflix, which is facing saturation in the US market. Of the 213.5 million Netflix subscribers, about 74 million are in the United States and Canada. It got an influx of global subscribers early on in the pandemic, but it’s investing in video games as it looks beyond movies and TV for growth.

In the US, the most expensive Netflix plan increased from $2 to $20; Its basic plan goes for $1 to $10. Plans vary 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 they can download. The company still mails DVDs on a service that requires a separate plan.

The price increase is effective from Friday. Netflix will notify customers by email and within the Netflix app before the new price is applied to them. Customers in New York, Alabama and Louisiana were also hit by the new local sales tax bill, which Netflix says was due to the addition of video games to the service.

Raising prices carries the risk of canceling people out. Netflix is ​​still the dominant streaming service in the US, but others, such as HBO Max and Disney+, have grown in popularity.

Netflix shares rose in late trading after news of a price hike. The stock closed up $6.49, or 1.3 percent, to $525.69. The company announced its financial results for the fourth quarter Thursday.

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