Netflix is increasing the cost of its subscriptions in the U.S. and Canada. The increases are as follows: netflix usa price hike
– The standard definition plan will increase from $8.99 to $9.99
– Two screen plans increase from $13.99 to $15.49
– The 4K premium plan, meanwhile, will increase to $19.99
Canadian subscribers will face increases, too, with the standard plan rising to $16.49 Cad and the premium plan going to $20.99. The basic plan will remain the same in Canada.
A Netflix spokesperson confirmed the change. “We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options,” the spokesperson said in a statement.
The United States and Canada is Netflix’s largest region with 74 million customers as of September 2021. The region accounted for nearly 44 percent of the company’s revenue in third quarter of 2021, or about $3.3 billion, Reuters reported.
The price increases, the first in those 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.
Netflix is facing more competition than ever, especially from newer streamers including Disney+, HBO Max, Amazon’s Prime Video, and Apple TV+. Netflix said last fall it had over 213 million subscribers around the world, which is much higher than the subscription count of its new rivals. As a result, Netflix has been investing heavily in producing content for its service, and said it expected to spend $17 billion on content in 2021. The company has not disclosed spending for 2022. netflix usa price hike
Netflix has added customers despite prior price increases, which shows its members have been willing to accept higher costs, Evercore ISI analyst Mark Mahaney said. “This is evidence that Netflix has pricing power.”
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