NEW YORK — Netflix will raise prices for its streaming video customers in the United States and Canada less than a year and a half after its last price increase and amid increased competition from other streaming services.
The Los Gatos, California-based company said prices will increase by $1 to $2, depending on the plan. The “standard” plan that most people have will increase $1.50 to $15.50. The Canadian version will increase the same amount in Canadian dollars to $16.50.
Price hikes are becoming more regular at Netflix, which is facing saturation in the US market. Of Netflix’s 213.5 million subscribers, some 74 million are in the United States and Canada. The service received an influx of international subscribers at the start of the pandemic, but it is investing in video games and has an eye beyond movies and shows for growth.
In the United States, the most expensive Netflix plan will increase from $2 to $20; your basic plan will increase $1 to $10. Plans vary depending on the number of screens users can watch Netflix on at the same time and the number of phones and tablets that can download. The company still mails out DVDs on a service that requires a separate plan.
Netflix will notify customers via email and in the app before applying the new cost.
Raising prices carries the risk of people canceling their subscription. Netflix remains the dominant streaming service in the United States, but others, such as HBO Max and Disney+, have grown in popularity.
Shares of Netflix rose in afternoon trading on news of the price increase. Its shares closed up $6.49, or 1.3%, at $525.69.