Netflix is raising prices in the United States and Canada, the streaming company said on Friday.
In the United States, the subscription price for the standard plan rose $1.50 to $15.49. The basic plan went up $1 to $9.99 and the premium plan increased $2 to $19.99
In Canada, the price for Netflix’s standard plan also went up $1.50 to $16.49 Canadian. The premium plan went up $2 to $20.99 Canadian. Its basic plan was unchanged.
Netflix had previously raised its prices in October 2020.
“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 pricing increase comes a week before the streaming company is set to announce its fourth quarter earnings.
But the reason behind the company’s move is pretty simple: It has been spending billions of dollars on content, and as streaming becomes more integral to the entertainment landscape, growth for companies like Netflix tends to slow and attracting new subscribers gets harder.
At that point, revenue needs to come from somewhere. Raising prices on consumers is an easy way to get it.
The company said it has 74 million members in the US and Canada, but that growth in those regions has become saturated.