Netflix increases monthly subscription charges for US customers.
The video streaming service Netflix on Thursday raised monthly charges in the United States for its standard and premium subscription plans, a move that sent the company’s shares soaring nearly 5 percent.
Netflix increased the cost of their standard subscription by $ 1 (approximately Rs. 74) per month to $ 14 (approximately Rs. 1000), and the premium tier price increased by $ 2 (approximately Rs. 150) per month to $ 18 ( approximately Rs. 1,300). The standard plan, the company’s most popular, allows two streams at the same time, while the premium plan allows four simultaneous streams.
The price increase was the first for US customers since January 2019.
Shares of Netflix were up 4.8 percent to $ 509.53 (roughly Rs 38,000) in afternoon trading on Nasdaq.
Netflix, the world’s dominant streaming service, enjoyed a subscription boom earlier in the year as viewers around the world were told to stay home to help combat the coronavirus pandemic. The company expects to end 2020 with more than 200 million streaming subscribers worldwide, with 73 million from the United States and Canada.
It also faces a growing list of competitors, including Walt Disney’s. Disney +, HBO Max since AT&T and Apple Apple TV +.
After the company’s earnings report last week, Chief Operating Officer Greg Peters said the company saw an opportunity to increase prices in countries “where we have delivered that extra value.”
On Thursday, a Netflix spokesperson said the company was raising prices “so that we can continue to offer more variety of TV shows and movies in addition to our great fall sale.”
Netflix’s basic plan, which allows only one stream at a time, will stay at $ 8 (roughly Rs. 600) a month in the United States.