NEW YORK — Netflix is raising prices for its live video streaming customers in the United States and Canada, less than a year and a half since the last price increase, as competition from other streaming services increases.
Los Gatos, California, said Friday that prices will go up by $1 to $2, depending on the plan. The “standard” plan that most people take increases by $1.50 to $15.50.
Price hikes have become a regular feature for Netflix, which is facing saturation in the US market. Of the 213.5 million Netflix subscribers, about 74 million are in the United States and Canada. It gained an influx of global subscribers early in the pandemic, but is investing in video games as it looks to expand beyond movies and television.
In the US, the most expensive Netflix plan goes up by $2 to $20; Your basic plan increases from $1 to $10.
Plans vary based on variables such as the number of screens users can watch Netflix on at the same time and the number of phones or tablets they can download. The company still ships DVDs by mail on a service that requires a separate plan.
The price increase is effective from Friday. Netflix will notify customers via email and within the Netflix app before the new price is applied. Customers in New York, Alabama and Louisiana were also affected by new local sales tax bills, which Netflix said were due to the addition of video games to the service.
Raising prices carries the risk of people canceling. Netflix is still the dominant streaming service in the United States, but others, such as HBO Max and Disney+, have gained popularity.
These are the games available so far.
Netflix shares rose in late trading after news of a price hike spread. The stock closed up $6.49, or 1.3%, at $525.69. The company announced its fourth-quarter financial results on Thursday.
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