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January 14, 2022

Canadians will now have to pay more for standard, premium Netflix plans

By
Staff

Reuters

Posted January 14, 2022 3:33 pm

 
 

Updated January 14, 2022 3:43 pm

4:43
Will cable cutters become Netflix naysayers?

WATCH ABOVE: Will cable cutters become Netflix naysayers? – Nov 30, 2018


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Netflix Inc has raised its monthly subscription price in Canada by $1.50, to go from $14.99 to $16.49 for a standard plan, the company said Friday, to help pay for new programming to compete in the crowded streaming TV market.

The company also raised the price for the U.S. by $1 to $2 per month, depending on the plan. The standard plan, which allows for two simultaneous streams, now costs $15.49 per month, up from $13.99, in the United States.

Read more:

Netflix Q3 earnings grow amid rise in subscribers

The price increases, the first in those 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 bills. The price increases have not been previously reported.

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“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” a Netflix spokesperson said.

“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,” the spokesperson added.

The world’s largest streaming service is facing the most competition ever from companies looking to attract viewers to online entertainment. Walt Disney Co, AT&T Inc’s WarnerMedia, Amazon.com Inc and Apple Inc are among the rivals pouring billions into new programming.

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Netflix had said it would spend $17 billion on programming in 2021. The company has not disclosed spending for 2022.

The U.S. price of Netflix’s premium plan, which enables four streams at a time and streaming in ultra HD, was increased by $2 to $19.99 per month. For Netflix’s basic plan, with one stream, the cost rose by $1 to $9.99 per month.

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In Canada, the premium plan rose by C$2 to C$20.99, and the basic plan was unchanged at C$9.99.

The United States and Canada is Netflix’s largest region with 74 million customers as of September 2021. Most of the company’s recent growth has come from overseas.

Netflix’s subscriber growth slowed from a boom early in the COVID-19 pandemic but rebounded with help from global phenomenon Squid Game, a dystopian thriller from South Korea released in September. Total global subscriptions reached 213.6 million.

The company’s next subscriber report is due Thursday when Netflix posts quarterly earnings. Analysts project the company will report 8.5 million new sign-ups from October through December, according to Thomson Reuters I/B/E/S data, bringing its global subscriber base to 222 million.

— Reporting by Lisa Richwine

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