Netflix (NFLX) is raising its prices in the U.S. and Canada as competition among video streaming services intensifies.
The Los Gatos, California, company said late Friday that prices in Canada are going up by $1 to $2 a month, depending on the plan a subscriber has. The standard plan that most people in Canada take is increasing by $1.50, to $16.50 per month.
Price increases are becoming common at Netflix, which is facing saturation in the U.S. market. Of Netflix's 213.5 million subscribers, some 74 million are in the U.S. and Canada. It got an influx of global subscribers early in the pandemic but is investing in video games as it looks beyond movies and television shows for future growth.
In the U.S., Netflix's most expensive plan is increasing by $2 U.S. to $20 U.S. per month. Its basic plan is rising by $1 U.S. to $10 U.S. The plans vary based on variables such as the number of screens users can watch Netflix on at the same time.
The price increase is effective immediately. Netflix said it will tell customers by email and inside the Netflix app before the new price is applied to them.
Competition among streaming services is intensifying. Netflix remains the dominant streaming service, but others, such as HBO Max and Disney+ (DIS), have increased in popularity.
Netflix shares gained in late trading after news of the price increase. The stock closed Friday up $6.49 U.S., or 1.3%, to $525.69 U.S.
Netflix reports its fourth quarter financial results this Thursday (January 20).
