Netflix is raising prices for its video streaming customers in the United States and Canada, less than a year and a half after the company’s last price increase, as competition from other streaming services grows.
The Los Gatos, California-based company announced on Friday that prices will rise by $1 to $2, depending on the plan. The “standard” plan, which most people choose, will rise by $1.50 to $15.50. The Canadian version is increasing by the same amount in Canadian currency, to $16.50 Canadian dollars.
Price increases are becoming more common at Netflix, which is nearing saturation in the US market. Netflix has 213.5 million subscribers, with 74 million based in the United States and Canada. It received an influx of global subscribers early in the pandemic, but is now investing in video games as it seeks to expand beyond movies and television.
In the United States, Netflix’s most expensive plan will rise by $2 to $20, while its basic plan will rise by $1 to $10. The plans differ depending on variables such as the number of screens users can watch Netflix on at the same time and the number of phones or tablets that can download. The company still mails out DVDs as part of a separate service plan.
The price increase takes effect on Friday. Before the new price is applied to customers, Netflix will notify them via email and within the Netflix app. Customers in New York, Alabama, and Louisiana have also received a new local sales tax bill, which Netflix claims is due to the addition of video games to the service.
Raising prices increases the likelihood of cancellation. Netflix is still the most popular streaming service in the United States, but others, such as HBO Max and Disney+, have grown in popularity.
Netflix shares rose in late trading following the announcement of the price increase. The stock finished the day up $6.49, or 1.3 percent, at $525.69. On Thursday, the company will release its fourth-quarter financial results.