Netflix increased the prices of its monthly fees for its service in the US, causing the company’s shares to rise to more than 3%, before settling at 1.25%, closing at $525.69 dollars per share.
The monthly cost of the basic plan increased to $9.99 dollars, the standard plan increased from $13.99 to $15.49 dollars and the premium plan increased from $17.69 to $19.99, according to the Netflix website. Prices in Canada also increased.
A Netflix spokesperson confirmed the change: “We are updating our prices so that we can continue to offer a wide variety of quality entertainment options,” the spokesperson said in a statement. , according to CNBC.
Netflix has been uploading the prices in previous years and is part of the company’s long-term strategy. The company previously raised prices for US customers by 2019 and 2020.
Netflix has been increasing its prices at the same time that new customer growth has slowed. Netflix’s price increases also reflect the company’s confidence that its plans are embedded in the lives of its customers and will not be canceled or dropped due to price increases.
The company said Friday that customers received an email about the price increases 30 days before the increase was imposed.
Netflix now faces more competition than ever, including Disney+, HBO Max, Amazon Prime Video and Apple TV+.
Last year it was announced that it had more than 213 million subscribers worldwide, much more than the number of subscriptions of its competition . As a result, the company has been investing heavily in producing content for its service and said it expected to spend $17,000 millions in content on 2021.
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