Netflix has raised the price of monthly subscription packages by $1 to $2 in the US, increasing revenue and increasing the money they can spend on programming.
The changes, posted on Netflix’s website, range from a $1 increase on its basic plan, which allows only one user at a time, to a $2 increase for the premium service, which offers ultra-high-definition picture and four screens. The company’s Standard plan now costs $15.49 in the US, an increase of $1.50.
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The broadcast industry leader last raised prices in October 2020, when the Standard plan went up by $1. It has been increased every year or two. Netflix has also raised prices in Canada, where the mid-tier plan costs CAD 16.49.
“We are updating our pricing so we can continue to offer a variety of high-quality entertainment options,” a company spokesperson said in an emailed statement. “As always, we offer a range of plans so members can choose the right price for their budget.”
Netflix shares rose 3.7% on the back of the news reported by Reuters earlier. The company releases its fourth-quarter earnings next week. It’s expected to post a net increase of 8.4 million subscribers and a global total of 221.9 million, according to data compiled by Bloomberg.
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