Netflix has raised its monthly subscription price by $1 to $2 (approximately R$75 to Rs. 150) a month in the United States, depending on the plan, the company said on Friday, to help pay for new programming to compete in the crowded streaming. television market.
The standard plan, which allows for two simultaneous streams, now costs US$15.49 (approximately Rs. 1,100) per month, up from US$13.99 (approximately Rs. 1,000) in the US.
Prices also rose in Canada, where the standard plan rose to CAD 16.49 (approximately Rs. 970) from CAD 14.99 (approximately Rs. 880).
The price increases, the first in these markets since October 2020, took effect immediately for new customers. Existing members will see the new prices in the coming weeks when they receive their monthly bills. Price increases have not been previously reported.
“We understand that people have more entertainment options than ever before and we are committed to providing an even better experience for our members,” said a Netflix spokesperson.
“We are updating our pricing so that we can continue to offer a wide variety of quality entertainment options. As always, we offer a variety of plans so members can choose a price that suits their budget,” the spokesperson added.
The world’s biggest streaming service is facing the most competition from companies looking to lure viewers into online entertainment. Walt Disney, AT&T’s WarnerMedia, Amazon and Apple are among rivals investing billions in new programming.
Netflix had said it would spend $17 billion (126,457.05 crore) on programming in 2021. The company did not disclose spending for 2022.
The price of Netflix’s premium plan in the US, which allows for four streams at the same time and streaming in ultra HD, has increased from US$2 to US$19.99 (approximately Rs. 140 to Rs. 1,400) per month. For Netflix’s basic plan with one stream, the cost went up from US$1 to US$9.99 (approximately Rs. 74 to Rs. 740) per month.
In Canada, the premium plan increased CAD 2 to CAD 20.99 (approximately Rs. 118 to Rs. 1,200), and the basic plan remained unchanged at CAD 9.99 (approximately Rs. 600).
The United States and Canada are Netflix’s largest region, with 74 million customers as of September 2021. Most of the company’s recent growth has come from abroad.
Netflix subscriber growth has slowed from a boom at the start of the COVID-19 pandemic, but has picked up with the help of the global phenomenon Squid Game, a dystopian thriller from South Korea released in September. Total global subscriptions reached 213.6 million.
The company’s next subscriber report is due on Thursday, when Netflix reports quarterly earnings. Analysts project the company will report 8.5 million new subscriptions from October to December, according to Thomson Reuters I/B/E/S data, bringing its global subscriber base to 222 million.
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