Video streaming service Netflix Inc. (NASDAQ:NFLX) is again raising its monthly charges in the United States for its standard and premium subscription plans.
The subscription fee hike sent the company’s shares climbing nearly 5% in pre-market trading Friday. Netflix said it is increasing the cost of its standard subscription by $1 a month to $14, and the price for the premium tier rose by $2 per month to $18.
The standard plan, the company’s most popular, enables two streams at the same time, while the premium plan allows for four simultaneous video streams. Netflix last raised prices in the U.S. in January 2019.
Shares of Netflix jumped 4.8% to nearly $510 in early trading Friday.
Netflix, the world’s dominant streaming service, enjoyed a boom in subscriptions at the beginning of the year as viewers around the world were told to stay at home to help fight the Covid-19 pandemic. The company expects to end 2020 with more than 200 million streaming subscribers around the world, with 73 million of those from the United States and Canada.
Netflix also faces a growing list of competitors including Disney+, HBO Max, Hulu Plus, Amazon Prime Video and Apple TV+.
After the company’s earnings report last week, Chief Operating Officer Greg Peters said the company saw an opportunity to increase prices. On Thursday, Netflix said the company is raising prices "so that we can continue to offer more variety of TV shows and films - in addition to our great fall line up."
Netflix’s basic plan, which allows only one stream at a time, remains unchanged at $8 a month in the U.S.
