PDT 10/29/2020 12:33 PM
Now, the cost of subscribing to the standard Netflix plan is $14 per month.
Subscribe to Netflix in the United States will become more and more expensive.
The streaming media giant has increased the cost of its two plans for the first time in a year and a half.
The standard plan allows people to stream media on two screens at the same time and has access to the Netflix HD library. The price of the plan is $1 higher, from $13 per month to $14 per month. The highest-priced premium plan allows up to four video streams at the same time, which will increase by $2 per month to $1
Netflix maintains the cheapest service, the basic plan, at $9 per month. This option allows only one stream, and does not allow subscribers to access high-definition programs.
The last time Netflix raised prices in the United States was in May 2019. This means that in less than two years, the price of its standard package has risen by $3 and the price of its premium package has risen by $4.
The price increase comes at a time when Netflix has seen substantial growth in the United States due to the global coronavirus pandemic. Of the 195 million users worldwide, the United States and Canada account for nearly 73.1 million. In summer, the average income per subscriber in the United States and Canada is $13.40. The company is betting that consumers will continue to pay for the service even if the price is slightly higher and faced with more subscription streaming options. Last year, Disney+, Apple TV+, Peacock and HBO Max entered four new service markets. Among these services, only HBO Max’s service charges are higher than the standard Netflix plan.
Investors are pleased with the news of the price increase, which will certainly boost the company’s domestic ARPU and help it increase overall revenue. The stock rose more than 5% in midday trading on the Nasdaq market.