The standard plan, which allows two simultaneous streams, now costs $15.49 per month, compared to $13.99 in the United States.
Prices have also increased in Canada, where the standard plan has gone from C$14.99 to C$16.49.
Shares of Netflix gained nearly 3% to $533.84 on the Nasdaq after Reuters reported the price hike. They closed up 1.3% at $525.69.
The increases, the first in these markets since October 2020, took effect immediately for new customers. Existing members will see the new prices in the coming weeks when they receive their monthly invoices.
“We understand that people have more entertainment choices 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 wide range of quality entertainment options. As always, we offer a range of plans so members can choose a price that suits their budget,” the spokesperson added. .
The world’s largest streaming service faces unprecedented competition from companies seeking to attract viewers to online entertainment. Walt Disney Co, AT&T Inc’s WarnerMedia, Amazon.com Inc and Apple Inc are among rivals investing billions in new programs.
According to Mark Mahaney, analyst at Evercore ISI, Netflix has gained customers despite past price increases, which shows that its members are willing to accept higher costs.
“It’s proof that Netflix has pricing power,” Mahaney said.
Netflix had said it would spend $17 billion on programming in 2021. The company did not disclose its spending for 2022.
The US price of Netflix’s premium plan, which allows four streams at once and streaming in ultra HD, has been increased by $2 to $19.99 per month. For Netflix’s basic plan, with a single stream, the cost has increased by $1 to $9.99 per month.
In Canada, the premium plan increased by C$2 to C$20.99, and the basic plan remained unchanged at C$9.99.
At $15.49 a month, Netflix’s standard US plan now costs more than its competitors. HBO Max, owned by AT&T Inc, is currently running a promotion for $11.99 per month for 12 months.
Disney+ from Walt Disney Co is priced at $7.99 per month or $79.99 per year.
The United States and Canada is Netflix’s largest region with 74 million streaming customers as of September 2021. The region accounted for nearly 44% of the company’s revenue in the third quarter of 2021, or approximately 3 .3 billion.
Most of the recent increase in the company’s subscriber base has come from abroad.
Netflix’s subscriber growth slowed after a boom at the start of the COVID-19 pandemic, but rebounded thanks to global phenomenon “Squid Game,” a South Korean dystopian thriller released in September. The total number of subscriptions worldwide reached 213.6 million.
The company’s next subscriber report will be released on Thursday, when Netflix releases its quarterly results. Analysts expect the company to see 8.5 million new signups from October to December, according to Thomson Reuters I/B/E/S data, bringing the total number of subscribers to 222 million. (Reporting by Lisa Richwine; additional reporting by Dawn Chmielewski; editing by Cynthia Osterman)