New York (CNN Business) — Your Netflix bill is about to go up again. The streaming company said Friday that it will be increasing the prices of its plans in the United States and Canada.
In the US, the standard plan subscription price rose $1.50 to $15.49. The basic plan went up $1 to $9.99 and the premium plan went up $2 to $19.99
In Canada, the price of Netflix’s standard plan also rose by $1.50 to $16.49 Canadian. The premium plan went up $2 to $20.99 Canadian dollars. His basic plan remained unchanged.
Explaining its decision, Netflix provided a statement to CNN that was identical to its comment from October 2020, the last time it raised its prices.
“We understand that people have more entertainment options than ever before and we are committed to providing an even better experience for our members,” said a Netflix spokesperson. “We’re updating our pricing so we can continue to offer a wide variety of quality entertainment options. As always, we offer a variety of plans so members can choose a price that fits their budget.”
Netflix shares rose about 2% on the news.
The price increase comes a week before the streaming company announces its fourth-quarter earnings.
But the reason behind the company’s move is quite simple: It has been spending billions of dollars on content, and as streaming services become more integral to the entertainment landscape, the growth of companies like Netflix tends to slow down. slowing down and attracting new subscribers becomes more difficult.
At that point, the income must come from somewhere. Raising prices to consumers is an easy way to do this.
Case in point: Netflix said in October that it added 4.4 million subscribers, bringing its global subscriber count to 213.5 million, a good but unspectacular total. This followed two consecutive slow quarters for the company.
Netflix also reported in those earnings that it added roughly 70,000 subscribers in the US and Canada. That was an improvement from the loss of subscribers in the second quarter, but it only increased about 1 million subscribers compared to last year’s total in both countries.
The company said it has 74 million members in the US and Canada, but growth in those regions has stalled.
The price hike was first reported by Reuters.