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The big picture: Netflix is raising the price of its streaming subscription service in the US for the second time during the pandemic. With more entertainment choices now than ever before, Netflix will use the extra money to keep offering subscribers a wide array of quality options on its platform.
A basic Netflix account, which allows for streaming on a single device at a time and doesn’t include HD or 4K content, is now a buck more expensive per month at $9.99. Moving up to the standard tier lets you watch on two screens simultaneously and includes HD content for $15.49 per month, a $1.50 hike over the previous rate.
The top-tier premium package allows for four simultaneous streams as well as 4K Ultra HD content when available. That’ll now set you back $19.99 per month, up from $17.99.
Rates are also going up in Canada, with the standard plan now priced at 16.49 CAD per month.
A spokesperson told Reuters they are updating pricing so they 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,” the spokesperson added.
See also: Against All odds: How Netflix Made It
Share value in Netflix shot up around $20 on the news but closed after losing half of those gains at $525.69.
Netflix last raised its prices in the US in October 2020, tacking on $1 to the standard tier and $2 on the premium tier. The basic tier was unchanged in the last wave of price increases.
With the new rates, Netflix is now significantly more expensive than rival streaming services. HBO Max can be had for $7.99 per month for a full year, the same as Disney+. The Disney Bundle, which includes Disney+, ESPN+ and the ad-supported version of Hulu, is priced at $13.99 per month.
Image credit: David Balev