Netflix customers will obtain a notification 30 days earlier than their first billing date underneath the brand new costs, which tick up $2 in some circumstances.
For the primary time since October 2020, Netflix is growing the worth of its subscription plans in the US and Canada.
The streaming service introduced on Friday that American subscribers to its primary plan — which permits streaming on one display at a time and solely provides normal definition — will see their month-to-month invoice enhance from $8.99 to $9.99. The worth of an ordinary plan, which incorporates two screens and HD entry, has elevated from $13.99 to $15.49 monthly. And Netflix’s premium subscription plans, which characteristic Extremely HD, have elevated from $17.99 to $19.99 a month.
In Canada, the worth of the fundamental plan stays the identical. Nonetheless, an ordinary subscription will now value $16.49 CAD and the price of a premium subscription has elevated to $20.99 CAD monthly.
Whereas the modifications are efficient instantly, the corporate says all Netflix subscribers will obtain a notification through e mail and the Netflix app 30 days earlier than their first billing date underneath the brand new costs.
Netflix has usually elevated its costs yearly as the corporate grows. 2021 didn’t characteristic a value enhance, partially because of the firm’s have to drive subscriber progress and compete with different streaming providers. This value enhance is comparable in measurement to comparable value hikes in 2019 and 2020.
The brand new costs replicate an more and more difficult atmosphere for the streaming large. Subscriber progress has slowed for Netflix in current months, notably in America. On the identical time, Netflix spends more cash on content material yearly to compete with the plethora of different streaming providers available on the market. The streamer estimated that it spent $17 billion in 2021 on content material manufacturing and acquisition, regardless of subscriber progress being stagnant (and briefly, unfavorable) in the US and Canada.
And whereas the corporate has loved standard success with star-studded tasks together with “Don’t Look Up,” an growing reliance on star energy inevitably results in larger bills (Jennifer Lawrence and Leonardo DiCaprio took residence $25 and $30 million paydays alone, respectively, for Adam McKay’s smash hit). Asia, nonetheless, has been an enormous progress area for Netflix, and the corporate has signaled plans to extend its funding in Asian tv reveals.
Netflix inventory has fallen almost 25% since its November 2021 peak. Shares of Netflix inventory rose by 1.25% on Friday following the information. The corporate is scheduled to ship its quarterly earnings report on January 20.