Netflix raises its prices again in the US and Canada
Netflix has revealed price increases to its streaming service for subscribers in the US and Canada. The company claimed that the rise in costs is required to better compete with other streaming platforms. New subscribers will have to pay the new prices, which are already in effect, while current subscribers will see the price increase in the weeks to come.
Other streaming platforms such as Disney, Amazon and Apple are investing billions into new content to bring in customers. Thus, Netflix is facing the most competition in its history. Netflix stated that it has allocated US$17 billion for programming in 2021. The price increases should help the company in offsetting these massive investments.
The cost of the monthly standard plan rose from US$13.99 to US$15.49 in the US and from C$14.99 to C$16.49 in Canada. This makes Netflix’s standard subscription more expensive than its rivals. The price of the premium plans have also increased by two dollars for both US and Canada to US$19.99 and C$20.99, respectively. The price increases in the US and Canada are understandable given that the region has the highest proportion of Netflix subscribers (74 million) and revenue (44 percent).
According to Evercore ISI analyst, Mark Mahaney, it seems that customers are fine with paying these price hikes since Netflix managed to gain new subscribers even after previous increases. Netflix has also seen a subscriber boom during the early pandemic and after the release of Squid Game.