Netflix users in the United States with paid subscriptions can expect a monthly fee increase of $1-2. The company stated that this change is related to the development of new programs from Netflix and competition in the crowded streaming TV market. This move would help it compete with big names like Sling TV, Hulu, Disney Plus, and others.
Recent Price Update
Depending on the plan, price increases will vary. For example, the standard plan now costs $15.9 instead of $13.99 for users in the United States. The fee increase will also affect Canada, where the same plan has gone from CAD 14.99 to CAD 16.49. As for the premium plan, the price has been increased by $2 in the US and CAD 2 in Canada.
This change has already entered into force for new Netflix clients. Customers who already have a paid subscription will see changes in tariff plans at the next monthly subscription payment dates. According to a Netflix spokesperson, the move was necessary to continue to delight customers with new quality content. He also added that the company continues to offer various plans for different customers' budgets. The last time prices went up was in October 2020.
Competition Drives Netflix to Action
Another important reason for recent changes is the growing competition with other companies seeking to gain a share of viewers for their online services. For now, it is known that Netflix was going to spend about $17 billion on software development in 2021. The competition in this game is getting tougher every year.
The United States and Canada account for the bulk of Netflix’s 74 million subscribers. According to the latest quarterly report, the total number of subscribers is over 213 million. The next report predicts an 8.5 million subscriber growth for Netflix. How this change will impact customers? Feel free to express your thoughts below and don’t forget to share this article with friends!
