Netflix (NFLX) stock rose slightly in Friday afternoon trading after the streaming platform raised the price of its subscriptions by $1-2.
Netflix’s basic plan in the U.S. rose by $1 to $9.99 per month. The standard U.S. subscription now costs $15.49 per month, up from $13.99. Netflix’s premium plan was increased to $19.99 per month from $17.99. The increase was first reported by Reuters.
The company will report Q4 earnings on January 20.
“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 told Reuters.
The price increases had not been pre-announced, though analysts have noted price elasticity when it comes to Netflix subscribers amid stiff streaming competition and a slowing user base as the pandemic winds down.
Netflix’s third-quarter subscriber additions in 2021 rebounded from the prior three month period in part because of a robust slate of content, including the hit Korean television show “Squid Game.” A record 142 million people watched the show in its first four weeks.
Netflix logo displayed on a phone screen and a laptop keyboard are seen in this illustration photo taken in Krakow, Poland on January 7, 2022. (Photo by Jakub …read more