It’s getting a bit more expensive to subscribe to Netflix in the U.S.
The streaming giant has upped the cost of two of its plans, its first price increase in a year and a half.
The standard plan, which lets people stream on two screens at the same time and features access to Netflix’s HD library, will cost $1 more, going from $13 per month to $14 per month. The highest-price premium plan, which allows up to four streams at the same time and also includes access to ultra HD programming, will increase by $2 to $18 per month.
Netflix is keeping its cheapest offering, the basic plan, at $9 per month. That option only allows for one stream and does not give the subscriber access to HD programming.
Related Stories
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” a company spokeswoman said in a statement. “We’re updating our prices so that we can continue to offer more variety of TV shows and films — in addition to our great fall lineup. As always we offer a range of plans so that people can pick a price that works best for their budget.”
Netflix last raised prices in the U.S. in May 2019. That means that, in less than two years, the price of its standard plan has risen by $3 and the price of its premium plan has risen by $4.
The price increase comes as Netflix has seen significant growth in the U.S. amid the global coronavirus pandemic. The U.S. and Canada account for nearly 73.1 million of its 195 million global subscribers. The average revenue per subscriber in the U.S. and Canada during the summer was $13.40.
The company is making a bet that consumers will continue to shell out for the service even at the slightly higher price point and as they face greater subscription streaming options. In the last year, four new services have entered the market: Disney+, Apple TV+, Peacock and HBO Max. Of those, only HBO Max charges more for its service than the standard Netflix plan.
Investors were pleased with the news of the price increase, which is likely to drive the company’s domestic ARPU up and to help it grow its overall revenue. The stock traded up more than 5 percent midday on the Nasdaq.
