Netflix Inc (NASDAQ:NFLX) is raising its United States monthly subscription prices by $1 to $2 per month depending on the plan.
The price increase will help Netflix pay for new programming in order to remain competitive in the increasingly crowded streaming space.
"We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can pick a price that works for their budget," a Netflix spokesperson told Reuters.
Netflix's standard plan, which previously cost $13.99 per month, has been raised to $15.49 per month in the U.S. The basic plan was raised to $9.99 per month, up from $8.99, and the premium plan was increased from $17.99 to $19.99 per month.
Prices were also raised in Canada by similar amounts.
The price increases have already been put in place for new Netflix customers and existing customers will see price changes on their upcoming monthly bills.
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Why It Matters: Netflix is facing increasing competition from Walt Disney Co's (NYSE:DIS) Disney+ and AT&T Inc's (NYSE:T) HBO Max.
Netflix's subscriber growth slowed in 2021 following a surge in subscribers during the previous, pandemic-stricken year. However, growth concerns were eased by some of the company's biggest hits like "Squid Game," which became the company's biggest TV show ever last year.
Netflix is set to announce its quarterly financial results after the market closes on Jan. 20.
NFLX Price Action: Netflix has traded as low as $478.54 and as high as $700.98 over a 52-week period.
The stock was up 2.02% at $530.17 at time of publication.
