The cost of your Netflix subscription is set to increase once more, reports CNN. The streaming media company announced on Friday that its plans in the US and Canada will be priced more.
The standard plan’s price increased by $1.50 to $15.49 in the United States. The basic package now costs $9.99, while the premium plan costs $2 more at $19.99.
Netflix’s regular package in Canada has also increased by $1.50 to $16.49. The premium plan has increased by $2 to CAD 20.99. The fundamental strategy remained the same.
Netflix issued a statement to CNN explaining its decision, which was nearly identical to its previous one from October 2020, when it raised its fees the last time.
According to a Netflix representative, they understand that people have diverse entertainment options than ever before, and they’re committed to giving their members an even better experience. They are changing the prices to continue to provide a diverse range of high-quality entertainment options. As always, Netflix provides a variety of options to choose from so that members may choose the pricing that suits their needs.
Following the announcement, Netflix’s stock jumped almost 2%.
The price hike comes only a week before the streaming service’s fourth-quarter earnings are expected to be released.
The company’s move, however, has a simple explanation: Netflix has spent billions of dollars on providing good content, and as streaming becomes more important in the entertainment landscape, growth slows and recruiting new members becomes more difficult.
Revenue must be found someplace at that moment. It’s simple to gain it by raising costs on customers.
For example, in October, Netflix announced that it had attracted 4.4 million new customers, bringing its total global subscriber count to 213.5 million, a respectable but not outstanding amount. The company had had two-quarters of poor performance in a row.
In those earnings, Netflix also stated that it attracted around 70,000 new customers in the United States and Canada. This was an improvement over the second quarter’s loss of customers, but only by around 1 million subscribers over year-ago totals in all those countries.
The corporation claims to have around 74 million members in the Canada and United States, but growth in both markets has reached a plateau.
Ranjita is a seasoned writer on a variety of topics. She has been writing for 8 years now on various international publications. Entertainment and current news topics are her favorite. She can be reached at [email protected]