On Friday, giant streaming platform Netflix said that it has raised its subscription rates in both the U.S. and Canada. Reuters was first to report the hike in prices. Netflix explained its decision to CNN in a statement that was identical to the one it had given the outlet, in October 2020, the last time it had raised its rates. The company’s stock increased by about two percent after its announcement. The increase comes a week before the platform will announce its earnings for the fourth quarter.
In the U.S., the rates are as follows:
Standard plan increased by $1.50–new rate $15.49
Basic plan increased by $1–new rate $9.99
Premium plan increased by $2–new rate $19.99.
In Canada, the rates are as follows:
Standard plan increased by $1.50–new rate $16.49 Canadian
Premium plan increased by $2–new rate $20.99 Canadian
Basic plan remains unchanged.
In its statement Netflix said that they understood that people had more entertainment choices than ever and that they were committed to providing an “even better experience” for their members. The Netflix spokesperson said that they were updating their prices so that the streaming platform could continue to offer a larger number of “quality entertainment options.”
The streaming service also said that they always offered a “range of plans” to allow members to pick the correct one that suited their budgets.
However, it is well known that Netflix is spending billions of dollars for content. Streaming has become an integral part of entertainment and its growth for companies like Netflix is slow. Another factor that is proving to be difficult is attracting new subscribers. There are a plethora of streaming platforms waiting to displace Netflix from its top position, with original content and big budgets.
Total global subscriptions for Netflix were 213.6 million. Thomas Reuters data said that analysts have projected that the streaming platform will report 8.5 million additional subscribers from October through December 2021 and its global subscriptions would reach 222 million.
