Netflix CEO Reed Hastings speaks during the LG press conference at the 2014 International CES Mandalay Bay Convention Center on January 6, 2014 in Las Vegas, Nevada.
David Becker | Getty Images
Netflix Raising the monthly price of its streaming service in the U.S. sent the stock up more than 3% in Friday’s trading.
On Friday, Netflix shares ended up 1.25% higher at $525.69.
The monthly cost of the basic plan goes up by $1 to $9.99, the standard plan goes up from $13.99 to $15.49, and the premium plan goes up from $17.99 to $19.99, According to Netflix’s website. Canadian prices also rose.
A Netflix spokesperson confirmed the change. “We are updating our pricing so that we can continue to offer a variety of quality entertainment options,” the spokesperson said in a statement.
Wall Street has been counting on Netflix Raise prices as customer growth wanes. Netflix’s price hikes also reflect the company’s confidence that its programs are ingrained in customers’ lives and that they won’t be canceled or lost because of price hikes.
Netflix said Friday that customers will receive an email about the price increase 30 days before they see it.
Netflix faces unprecedented competition, especially from new streaming platforms including Disney+, HBO Max, Amazon’s Prime Video and Apple TV+. Netflix said last fall that it had more than 213 million subscribers worldwide, far higher than the subscription numbers of its newer rivals.As a result, Netflix has been investing heavily in producing content for its service and said it expects $17 billion spent Content for 2021.
Netflix reports quarterly earnings next week.
Correction: Netflix price changes will affect customers in the US and Canada. Affected regions were misrepresented in the title of an earlier version of this article.