Netflix is raising the price of its subscription service in the US. It has increased the monthly charges for the Standard and Premium subscription plans. The Standard plan is rising by $1 a month to $14. On the other hand, the Premium plan is receiving a price hike of $2, which translates to $18 per month. For the unaware, the former enables two streams at the same time, while the Premium plan allows for four simultaneous streams. Following the announcement, Netflix shares saw a jump of 4.8%.
After Netflix’s earnings report last week, its Chief Operating Officer Greg Peters that the company saw the opportunity to increase its prices in the countries where they had delivered the “extra value.” Following it, this Thursday, a Netflix spokesperson said that the company was raising prices “so that we can continue to offer more variety of TV shows and films, in addition to our great fall line up.” Notably, the Basic plan remains at $8.99 a month in the US. It allows users to stream on a single screen at a time.
According to Alex Sherman from CNBC, Netflix will alert users to the changes 30 days ahead of time. The streaming service enjoyed a boom following the lockdown in several countries during the pandemic. Netflix is expecting to end 2020 with more than 200 million streaming subscribers around the world, with 73 million of those from the United States and Canada. Meanwhile, it is also facing competition from a growing list of streaming services including Disney+, HBO Max, and Apple TV+.
Netflix is also expanding its stream in 4K for Mac users. However, you’ll need a Mac with a T2 security chip to stream Netflix in 4K HDR with macOS Big Sur.