According to Reuters, Netflix has increased the prices of subscriptions for American and Canadian users by between 1 and 2 dollars, depending on the type of subscription.
Thus, the prices for a standard subscription in the US increase from 13.99 to 15.49 dollars, while in Canada it increases from 14.99 to 16.49 Canadian dollars. The increase is for the company to be able to finance new content, to better compete in what has gradually become a market with many players.
The last time Netflix increased prices in the US and Canada was in October 2020, and the price increase will have an immediate effect on new customers.
“We understand that people have more choices in entertainment than ever before, and we are committed to delivering an even better experience to our members,” a Netflix spokesman told Reuters.
– Netflix has managed to attract new customers despite previous price increases, which shows that their members are willing to accept higher costs. It proves that Netflix has price power, says Evercore analyst Mark Mahaney according to Reuters.
The company presents fourth-quarter figures next week, with analysts expecting the company to report 8.5 million new subscribers in the period October to December, bringing total users to 222 million.
According to the Refinitive consensus, the company is expected to report $ 7.7 billion in revenue, with a profit per share. $ 0.82 share.