Netflix is raising prices in the U.S. and Canada, with its most popular subscription tier going from $13.99 a month to $15.49 in the U.S.
The lowest level of service climbed $1 to $9.99 and the premium tier is now $19.99, up from $17.99.
In Canada, the basic plan price did not change, but the standard plan (aka the middle tier) rose to $16.49 Canadian from $14.99.
Shares in Netflix immediately jumped 2% on the news and were around $528 in the closing minutes of the trading day.
With 214 million global subscribers, Netflix remains the leader in streaming and its scale gives it considerable leverage in terms of price. While every increase sees a certain number of subscribers “churn,” the trade term for canceling a subscription, the overall effect is to boost revenue.
Programming on Netflix has continued to set records over the past couple of months. Star-driven movies Red Notice and Don’t Look Up vaulting to the top of the movie chart and Squid Game last fall becoming a phenomenon.
Management at Netflix will address pricing and other strategic elements next week when the company reports its fourth-quarter financial results.
Regarding today’s move, a spokesperson said in a statement to Deadline, “We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members. We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can pick a price that works for their budget.”
The streaming field has continued to get crowded, with Disney, WarnerMedia, Apple and NBCUniversal all throwing their hats in the ring over the past two-plus years. WarnerMedia’s HBO Max, which ended 2021 with 73.8 million subscribers when combined with linear HBO, costs $15 for its commercial-free version, which used to be the top end of the market.
Price has been a decisions all new entrants have grappled with. Disney, Apple and others have offered a period of free access to certain wireless or hardware consumers and have opted to keep prices on the lower end of the scale even without those incentives. NBCU’s Peacock has a free tier supported by advertising and a Premium version that costs $5 for most subscribers.
