Netflix has raised its monthly subscription price by $1 to $2 per month in the United States, depending on the plan, for streaming customers.
The United States and Canada is Netflix’s largest region with 74 million customers as of September 2021. The region accounted for nearly 44 percent of the company’s revenue in third quarter of 2021, or about $3.3 billion, Reuters reported.
Netflix’s global subscriptions reached 213.6 million. Netflix is likely to report subscriber base of 220 in the fourth quarter of 2021.
Netflix has increased the standard plan, which allows for two simultaneous video streams, to $15.49 per month from $13.99, in the United States.
In Canada, the price of standard plan from Netflix will increase to C$16.49 from C$14.99.
The price increases, the first in those markets since October 2020, took effect immediately for new customers. Existing members will see the new prices in the coming weeks when they receive their monthly bills.
The world’s largest streaming service is facing the most competition ever from companies looking to attract viewers to online entertainment — especially during the pandemic. Walt Disney, AT&T’s WarnerMedia, Amazon.com and Apple are among the rivals pouring billions into new programming.
Netflix has added customers despite prior price increases, which shows its members have been willing to accept higher costs, Evercore ISI analyst Mark Mahaney said. “This is evidence that Netflix has pricing power.”
Netflix had said it would spend $17 billion on programming in 2021. The company has not disclosed spending for 2022.
The U.S. price of Netflix’s premium plan, which enables four streams at a time and streaming in ultra HD, will be increased by $2 to $19.99 per month. For Netflix’s basic plan, with one stream, the cost rose by $1 to $9.99 per month.
In Canada, the premium plan rose by C$2 to C$20.99, and the basic plan was unchanged at C$9.99.
At $15.49 per month, the standard U.S. plan from Netflix will cost more than competitors. HBO Max, owned by AT&T, is currently offering an $11.99-a-month promotion for 12 months.
The price of Walt Disney’s Disney+ is $7.99 a month or $79.99 a year.