Reed Hastings, CEO of Netflix, speaks at a press event at the International Consumer Electronics Show in Las Vegas, Nevada.
During trading on Friday, the stock rose as much as 3% after the company raised monthly prices for its service in the US.
On Friday, the stock rose 1.25% to close at $525.69.
The basic plan went from $1 to $9.99, the standard plan went from $13 to $15.49, and the premium plan went from $17 to $19.99. Canadian prices went up as well.
A person confirmed the change. We are updating our prices so that we can continue to offer a wide variety of quality entertainment options.
In the past, the company has raised prices as part of its long-term strategy. In the year 2020, prices for U.S. customers were raised by Netflix.
Wall Street has been counting on a price increase from the company. The confidence that the company has in its customers and in its plans is reflected in the price increases.
The price increases will be communicated to customers in an email 30 days before they see them.
Disney+, Amazon Prime Video, and Apple TV+ are just some of the newer streamers that are competing with Netflix. The company said last fall that it had over 200 million subscribers around the world. The company said it would spend $17 billion on content in the next two years.
Next week, the company reports earnings.
The price change will affect customers in the U.S. and Canada. The region was misstated in the headline.
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