Netflix has raised its monthly subscription price from $1 to $2 (roughly Rs. 75 to Rs. 150) per month in the United States according to plan, the company said on Friday, to help pay for new programming to compete in the crowded streaming TV market.
The standard plan, which allows two simultaneous streams, now costs $15.49 (about 1,100 rupees) per month, compared to $13.99 (about 1,000 rupees) in the US.
Prices have also increased in Canada, where the standard plan has gone from CAD 14.99 (around Rs 880) to CAD 16.49 (around Rs 970).
The price increases, the first in these 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 invoices. Price increases have not been previously reported.
“We understand that people have more entertainment choices than ever before and we are committed to providing an even better experience for our members,” a Netflix spokesperson said.
“We are 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 choose a price that suits their budget,” added the spokesperson.
The world’s biggest streaming service faces the toughest competition from companies looking to lure viewers into online entertainment. Walt Disney, AT&T’s WarnerMedia, Amazon and Apple are among rivals pumping billions into new shows.
Netflix had announced that it would spend $17 billion (126,457.05 crores) on programming in 2021. The company did not disclose its spending for 2022.
The US price of Netflix’s premium plan, which allows four streams at once and ultra HD streaming, has been increased by $2 to $19.99 (about Rs. 140 to Rs. 1,400) per month. For the basic plan of Netflix, with one stream, the cost has increased from $1 to $9.99 (about Rs. 74 to Rs. 740) per month.
In Canada, the premium plan increased by CAD 2 to CAD 20.99 (around Rs. 118 to Rs. 1,200), and the basic plan remained unchanged at CAD 9.99 (around Rs. 600).
The United States and Canada are Netflix’s largest region with 74 million customers as of September 2021. Most of the company’s recent growth has come from overseas.
Netflix subscriber growth slowed after a boom at the start of the COVID-19 pandemic, but rebounded with the help of the global phenomenon Squid game, a South Korean dystopian thriller released in September. Total global subscriptions reached 213.6 million.
The company’s next subscriber report is due Thursday when Netflix releases its quarterly results. Analysts expect the company to report 8.5 million new signups from October to December, according to Thomson Reuters I/B/E/S data, bringing its global subscriber base to 222 million.
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