Streaming services aren’t immune from inflation. Last Friday, Netflix (NFLX) announced its first price increase since October of 2020 for subscribers in the US and Canada.
The price of Netflix’s basic plan will be increased from $8.99 to $9.99, its standard plan from $13.99 to $15.49, and its premium plan from $17.99 to $19.99. The price changes will be effective immediately for new customers, and existing customers will be notified about the increase 30 days before they see it on their bill.
Netflix is confident consumers won’t cancel their subscriptions due to a small price increase and believes its different subscription plans offer flexibility, stating “we’re 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 pick a price that works for their budget.”
Why it matters
Shares of Netflix rose as much as 2% after the news broke on Friday. Wall Street has been expecting the streaming giant to raise its prices again as new subscriber growth slows and the company invests more and more into original content.
