Monthly subscriptions for its consumers in the United States have been raised by Netflix Inc by $1 to $2 per month, depending on the subscription plan of a customer as the company plans to use the additional revenues for creating new programs and compete in the streaming TV industry which is getting competitive, the pioneer in the segment said.
In the United States, the base package, which allows for two simultaneous streams, is now $15.49 per month, up from $13.99 previously.
The company has also increased prices in Canada, with the regular plan rising to C$16.49 from C$14.99.
Following the announcement of the news, shares of the company increased by almost 3 per cent at Nasdaq.
For new customers, the increases, which are a first in those areas since October 2020, took effect immediately.
Existing members will be notified of the increased costs when they get their monthly invoices in the coming weeks.
"We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members," a Netflix spokesperson said.
"We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can pick a price that works for their budget," the spokesperson added.
Companies aiming to draw consumers to online entertainment are putting pressure on the largest streaming service of the world - Netflix, which is facing the highest level of competition it has ever faced.
Walt Disney Co, AT&T Inc's WarnerMedia, Amazon.com Inc, and Apple Inc are just a few of the companies investing heavily in new programs and content for their video streaming services.
Netflix has gained consumers despite previous price increases, indicating that its subscribers are prepared to accept higher prices, according to Evercore ISI analyst Mark Mahaney.
"This is evidence that Netflix has pricing power," Mahaney said.
Netflix previously stated that it plans to spend $17 billion on programming in 2021. The firm has not yet revealed their spending plans for 2022.
Netflix's premium plan, which allows for four simultaneous streams and super HD streaming, has been raised by $2 to $19.99 a month in the United States. Netflix's basic plan, which includes one stream, has increased in price by $1 to $9.99 per month.
The premium plan in Canada increased by $2 to C$20.99, while the basic plan remained at C$9.99.
Netflix's regular U.S. plan now costs more than competitors, at $15.49 per month. HBO Max, which is owned by AT&T Inc, is presently running a 12-month $11.99-per-month promotion.
Disney+ costs $7.99 per month or $79.99 per year from Walt Disney Co.
With a claimed total of 74 million customers for its streaming services as of September 2021, the United States and Canada are Netflix's biggest markets. In the third quarter of 2021, the markets contributed over 44 per cent of the company's revenue, or $3.3 billion.
The majority of the firm's recent membership growth has come from outside the United States. Following a surge in its subscriber growth in the early stage of the Covid-19 pandemic, The subscriber growth of Netflix has slowed down. however, it rebounded in September because of the global sensation "Squid Game," a dystopian thriller from South Korea. The total number of subscriptions in the world has reached 213.6 million.
(Source:www.ndtv.com)
In the United States, the base package, which allows for two simultaneous streams, is now $15.49 per month, up from $13.99 previously.
The company has also increased prices in Canada, with the regular plan rising to C$16.49 from C$14.99.
Following the announcement of the news, shares of the company increased by almost 3 per cent at Nasdaq.
For new customers, the increases, which are a first in those areas since October 2020, took effect immediately.
Existing members will be notified of the increased costs when they get their monthly invoices in the coming weeks.
"We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members," a Netflix spokesperson said.
"We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can pick a price that works for their budget," the spokesperson added.
Companies aiming to draw consumers to online entertainment are putting pressure on the largest streaming service of the world - Netflix, which is facing the highest level of competition it has ever faced.
Walt Disney Co, AT&T Inc's WarnerMedia, Amazon.com Inc, and Apple Inc are just a few of the companies investing heavily in new programs and content for their video streaming services.
Netflix has gained consumers despite previous price increases, indicating that its subscribers are prepared to accept higher prices, according to Evercore ISI analyst Mark Mahaney.
"This is evidence that Netflix has pricing power," Mahaney said.
Netflix previously stated that it plans to spend $17 billion on programming in 2021. The firm has not yet revealed their spending plans for 2022.
Netflix's premium plan, which allows for four simultaneous streams and super HD streaming, has been raised by $2 to $19.99 a month in the United States. Netflix's basic plan, which includes one stream, has increased in price by $1 to $9.99 per month.
The premium plan in Canada increased by $2 to C$20.99, while the basic plan remained at C$9.99.
Netflix's regular U.S. plan now costs more than competitors, at $15.49 per month. HBO Max, which is owned by AT&T Inc, is presently running a 12-month $11.99-per-month promotion.
Disney+ costs $7.99 per month or $79.99 per year from Walt Disney Co.
With a claimed total of 74 million customers for its streaming services as of September 2021, the United States and Canada are Netflix's biggest markets. In the third quarter of 2021, the markets contributed over 44 per cent of the company's revenue, or $3.3 billion.
The majority of the firm's recent membership growth has come from outside the United States. Following a surge in its subscriber growth in the early stage of the Covid-19 pandemic, The subscriber growth of Netflix has slowed down. however, it rebounded in September because of the global sensation "Squid Game," a dystopian thriller from South Korea. The total number of subscriptions in the world has reached 213.6 million.
(Source:www.ndtv.com)
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