Streaming video service Netflix on Thursday raised monthly charges in the USA for its standard and premium subscription plans, a move that sent the company’s shares climbing almost 5 percent.
Netflix increased the price of its standard subscription by $1 (kind of Rs. 74) a month to $14 (kind of Rs. 1000), and the price for the premium tier rose by $2 (kind of Rs. 150) per month to $18 (kind of Rs. 1,300). The usual plan, the company’s hottest, enables two streams at the same time, while the premium plan allows for four simultaneous streams.
The price increase was once the first for US customers since January 2019.
Shares of Netflix jumped 4.8 percent to $509.53 (kind of Rs. 38,000) in afternoon trading on Nasdaq.
Netflix, the world’s dominant streaming service, enjoyed a boom in subscriptions at the beginning of the year as viewers all over the world were told to stay at home to help fight the coronavirus pandemic. The company expects to end 2020 with more than 200 million streaming subscribers all over the world, with 73 million of those from the USA and Canada.
It also is facing a growing list of competitors including Walt Disney’s Disney+, HBO Max from AT&T and Apple’s Apple TV+.
After the company’s earnings outline final week, Chief Operating Officer Greg Peters said the company saw an possibility to increase prices in countries “where we’ve delivered that additional value.”
On Thursday, a Netflix spokesperson said the company was once raising prices “in order that we will be able to continue to offer more variety of TV shows and films, along with our great fall line up.”
Netflix’s basic plan, which allows only one stream at a time, will remain at $8 (kind of Rs. 600) a month in the USA.
© Thomson Reuters 2020
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