By Frank Pallotta, CNN Business
(CNN) — Your Netflix bill is about to rise again.
The streaming media company said on Friday that it is raising prices on its Standard plans in the United States and Canada.
In the United States, the subscription price for the Standard plan increased from $1.50 to $15.49. Basic plan increased from $1 to $9.99 and Premium plan increased from $2 to $19.99
In Canada, the price of Netflix’s Standard plan also went up from $1.50 to $16.49 Canadian. Premium plan goes from $2 to $20.99 Canadian. Its original plan was unchanged.
Explaining its decision, Netflix provided a statement to CNN that was similar to its remarks from October 2020, the last time it raised its prices.
“We understand that people have more entertainment options than ever before and we are committed to providing an even better experience for our members,” a Netflix spokesperson said. “We are updating our prices so that we can continue to offer a variety of quality entertainment options. As always, we offer a variety of plans so that members can choose the price that best suits their budget.”
Netflix stock rose nearly 2% following the news.
The price hike comes a week before the streaming company announced its fourth-quarter earnings.
But the reason behind the company’s move is pretty simple: It’s spending billions of dollars on content, and as streaming becomes more integral to the entertainment landscape, growth has been slowing for companies like Netflix with new customers. It becomes difficult to attract.
At that point, the revenue needs to come from somewhere. Raising prices on consumers is an easy way to achieve this.
Case in point: Netflix said in October that it added 4.4 million subscribers, bringing its global subscriber count to 213.5 million — a good but not spectacular total. This was followed by two consecutive dull quarters for the company.
Netflix also reported in those earnings that it added about 70,000 subscribers in the US and Canada. This was an improvement from the loss of customers in the second quarter, but those countries had only about 1 million customers from the year-ago total.
The company said it has 74 million members in the US and Canada, but growth in those regions has been saturated.
The price hike was first reported by .
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