Netflix Is Hiking Prices

Streaming giant Netflix is raising the cost for all of its monthly plans in the U.S. and Canada.

The Wrap reports Netflix’s standard plan, which is its most popular, will now cost $15.50 per month, up from $14, while the premium plan that includes 4K streaming will increase $2 from $18 to $20 per month. The basic plan, which doesn’t include HD, is also rising to $10 per month from $9.

The hike means that for most of Netflix’s customers, it will now cost more than HBO Max (which has a base price of $14.99 a month, though the streaming service has been offering discounted rates along with a cheaper ad-supported plan), which was previously among the most expensive streaming services.

The new prices will take effect immediately for new subscribers and be rolled out “gradually” to existing members.

Netflix last raised its prices for U.S. customers in October of 2020.

Netflix has added customers despite prior price increases, which shows its members have been willing to accept higher costs, Evercore ISI analyst Mark Mahaney told Reuters.

"This is evidence that Netflix has pricing power," Mahaney said.

Netflix had said it would spend $17 billion on programming in 2021. The company has not disclosed spending for 2022.

Netflix has 213.53 million global paid subscribers as of the end of the third quarter of 2021. The streaming giant reports its full year results for 2021 next Thursday.