Netflix raises prices in U.S. and Canada, stock pops

2 weeks ago

Netflix CEO Reed Hastings speaks during a LG property lawsuit astatine the Mandalay Bay Convention Center for the 2014 International CES connected January 6, 2014 successful Las Vegas, Nevada.

David Becker | Getty Images

Netflix raised monthly prices for its streaming work successful the U.S., sending the banal up implicit 2% during trading connected Friday.

The monthly outgo for the basal program roseate $1 to $9.99, the modular program jumped from $13.99 to $15.49, and the premium program roseate from $17.99 to $19.99, according to Netflix's website. Canadian prices accrued arsenic well.

A Netflix spokesperson confirmed the change. "We're updating our prices truthful that we tin proceed to connection a wide assortment of prime amusement options," the spokesperson said successful a statement.

Netflix has been raising prices successful erstwhile years and it is portion of the company's semipermanent strategy. Netflix antecedently raised prices for U.S. customers successful 2019 and 2020.

Wall Street has been counting connected Netflix to summation prices arsenic lawsuit maturation wanes. Netflix's terms increases besides bespeak assurance from the institution that its plans are entrenched successful its customers' lives and that they volition not cancel oregon churn due to the fact that of terms increases.

Netflix said connected Friday that customers volition person an email astir the terms increases 30 days earlier they spot the increase.

Netflix is facing much contention than ever, particularly from newer streamers including Disney+, HBO Max, Amazon's Prime Video, and Apple TV+. Netflix said past autumn it had implicit 213 cardinal subscribers astir the world, which is overmuch higher than the subscription number of its caller rivals. As a result, Netflix has been investing heavy successful producing contented for its service, and said it expected to walk $17 billion connected contented successful 2021.

Netflix reports quarterly net adjacent week.