Netflix is increasing most of its U.S. prices by 8% to 13%, as its video streaming service is becoming increasingly popular due to government-imposed blockades that put people at home in trouble in the fight against the pandemic.
The price increase implemented on Friday increased the cost of Netflix’s most popular US streaming package by $1 to $14 per month, and the premium package, which allows more people to watch the service on different screens at the same time, now costs $2 per month. , $18 per month. Netflix’s basic plan in the US is still $9 per month. This is the first price change of Netflix in the United States since its launch early last year.
New American subscribers will be charged a higher price immediately, and the increased price will affect existing customers in stages in the coming months.As of September, Netflix has 73 million subscribers in the US and Canada, most of which are located in the US
Netflix raised its prices in Canada at the beginning of this month and then ended its 30-day free trial in the United States, which is widely expected.
The price increase of Netflix comes at a time when restaurants, theaters and other entertainment venues have been closed due to efforts to contain the new coronavirus, and global growth has been rapid. The Los Gatos, California-based company gained 28 million global subscribers in the first nine months of this year, which has surpassed the full-year growth of 201
But rising prices may test Netflix’s popularity, especially as the pandemic-induced recession intensifies and forces more American households to reduce spending.
After Netflix raised US prices at the beginning of last year, from the end of March to the end of June, the number of users of streaming media services in the US and Canada decreased by 130,000.
Netflix also faces more competition than ever before, including strong financial competitors such as Amazon, Apple, Walt Disney and AT&T. And the prices of some of these plans are much lower than Netflix’s plans in the United States.
For example, Disney’s rapidly growing streaming service only pays $7 a month to access a library of the most popular movies of all time.
Apple’s long-established streaming service costs only $5 a month to purchase relatively few TV series and movies, but iPhone manufacturers are trying to invest more money in program production and other services. To expand its coverage. For example, a plan that includes videos, music, video games and online storage costs $15 a month, which is only $1 more than Netflix’s most popular standalone plan.
Netflix said in a statement: “We understand that people have more entertainment options than ever before, and we are committed to providing our members with a better experience.” “We are updating prices so that we can continue to provide more variety TV shows and movies.”
Higher prices should help boost Netflix’s profits, which is a prospect that investors like. However, due to the overall market decline, Netflix’s stock price fell more than 5% on Friday to close at $475.74. So far, Netflix’s stock price has risen nearly 50%, thanks in large part to the strong growth during the pandemic.