Netflix is about to get more costly, with the company saying Friday that it is hiking membership pricing in the United States and Canada for the third time in five years.
Netflix Price in US and Canada
According to the company’s website, the basic streaming plan in the United States is increasing by $1 to $9.99 a month, while the standard plan increased from $13.99 to $15.49 and the premium membership increased from $17.99 to $19.99.
A Netflix spokeswoman told CNBC that the higher charges would allow the company to “continue to offer a wide array of excellent entertainment alternatives.”
While the price increases will take effect immediately for new customers, Netflix claims the adjustments will be phased in overtime for existing users. Netflix also stated that current users would be notified via email about the increased pricing at least 30 days before the hike appears on their bills.
Netflix is hardly the first company to hike its fees. It raised subscription fees in both 2019 and 2020. As its subscriber growth slows, Wall Street has been expecting Netflix to boost its fees. The higher price is an important component of the streaming service’s long-term strategy, especially as competition from firms like Apple TV+, HBO Max, Disney+, and Amazon Prime Video rises.
- The cost for the basic streaming plan in the U.S. is rising by $1 to $9.99 a month, while the standard plan climbed from $13.99 to $15.49 and the premium membership rose from $17.99 to $19.99, according to the company’s website.
- “While the price rises will be effective immediately for new customers, Netflix says it will roll out the pricing changes gradually for current users.
- It boosted membership fees in 2019, as well as in 2020. Wall Street has expected Netflix to hike rates as its user growth wanes.