Netflix will raise prices in the US and Canada.Stock Benefits – Deadline

Netflix Is raising prices in the US and Canada, with the most popular subscription tier going from $ 13.99 per month to $ 15.49 in the US.

The lowest level of service has risen from $ 1 to $ 9.99 and the premium tier has gone from $ 17.99 to $ 19.99.

In Canada, the price of the base plan did not change, but the standard plan (also known as the middle class) rose from $ 14.99 to $ 16.49 CAD.

Netflix’s share price quickly jumped into the news, reaching $ 538 and then calming down to $ 525.69, up 1%. So far, along with most other Nasdaq strains, it plummeted in 2022.

The price increase is the first in North America since October 2020 and is valid for all new subscribers and will be phased in to current subscribers in the coming weeks.

Netflix, with 214 million global subscribers, continues Streaming And its scale gives it considerable leverage in terms of price. North America is the company’s main financial engine, but growth in North America has been flat recently, with a base of 74 million customers being only one-third of the total. Each time the price goes up, a certain number of subscribers “churn” (a trading term for canceling a subscription), but the overall effect is more revenue.

The company currently has positive cash flow and does not need to borrow to raise business funds, but relies on rising prices to raise huge spends on programming. Netflix says it expects to spend $ 17 billion on original and acquired content in 2021. No figures for 2022 are given, but co-CEOs Reed Hastings and Ted Salands strongly indicate that they plan to continue their staircase strategy in the last quarter. Increases the spending step. Some media companies spend more, but the reality is that no one is spending on Netflix’s level, given live sports.

Viewership is a star-led movie that has recently continued to set new benchmarks. Red Notice When Don’t look up Vault to the top of the movie chart, Squid game It becomes a phenomenon.

Netflix management will address pricing and other strategic factors when the company reports its fourth-quarter financial results next Thursday.

Regarding today’s move, a spokesperson said in a statement to Deadline: We are updating prices so that we can continue to offer a variety of high quality entertainment options. As always, we offer a variety of plans to help members choose the price that fits their budget. “

The streaming space continues to be crowded, with Disney, WarnerMedia, Apple and NBCUniversal all throwing their hats into the ring over the past two years. WarnerMedia’s HBO Max, when combined with the Linear HBO, gained 73.8 million subscribers and ended in 2021. It’s priced at $ 15 for the commercial free version, which was once the top end of the market.

Price is a decision that every new entrant has been working on. Disney, Apple, and others have opted to offer certain wireless or hardware consumers a period of free access and keep prices at the lower end of the scale without those incentives. NBCU’s Peacock has a free ad-supported tier and a premium version that costs $ 5 for most subscribers.

As the market continues to evolve, price increases become a reality of streaming. Disney + started at just $ 7 a month, but with a quick start after its launch in November 2019, the company announced a $ 1 monthly increase in December 2020. A cheaper, ad-supported tier for $ 10 per month.

Netflix will raise prices in the US and Canada.Stock Benefits – Deadline

Source link Netflix will raise prices in the US and Canada.Stock Benefits – Deadline

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