The broadcast media company said Friday it is raising prices from its standard plans in the United States and Canada.
In the US, the subscription price for the Standard plan went up $1.50 to $15.49. The basic plan increased from $1 to $9.99 and the premium plan increased from $2 to $19.99
In Canada, the price of the standard Netflix plan also increased by $1.50 to CAD 16.49. The $2 premium plan went up to CAD$20.99. Her basic plan has not changed.
Netflix stock rose nearly 2% after the news.
The price increase comes a week before the streaming company is due to announce its fourth-quarter earnings.
But the reason for the company’s move is very simple: It has been spending billions of dollars on content, and as streaming becomes more and more an integral part of the entertainment landscape, the growth of companies like Netflix tends to slow and attracting new subscribers becomes more difficult.
At this point, the revenue has to come from somewhere. Raising prices on consumers is an easy way to get them.
Netflix also reported in those earnings that it had added nearly 70,000 subscribers in the United States and Canada. This was an improvement from the loss of subscribers in the second quarter, but only an increase of about 1 million subscribers from the previous year’s total in those countries.
The company said it has 74 million members in the United States and Canada, but that growth in those regions is becoming saturated.