Netflix is one of the few companies in that rare category of actually thriving during the pandemic of 2020. In a move to become even more profitable, it’s raising prices on two of its premium plans. If you subscribe to the Netflix basic plan at $9 per month, you’re safe from any price increases, as that rate will remain the same for subscribers who only are allowed one stream and no access to HD programming.
For the standard plan, which allows streams on two screens at the same time and access to some of Netflix’s HD library, the price tag goes up $1, from $13 to $14 per month. The highest-priced premium plan, which allows four streams at the same time, goes from $16 to $18 per month.
Netflix last had a price increase in the U.S. back in May of 2019 and coincides with the company’s significant growth in the U.S. in 2020. The company is essentially betting that, with so many users in the U.S. and Canada getting used to turning to Netflix as they are stuck at home, the small increase will be something their customers will not have a problem with.
There has been a lot more competition in the streaming world in the past year as four new services have entered the market: Apple TV+, Peacock, Disney+ and HBO Max.
The pay increase was happily accepted by Wall Street, as Netflix stock was up more than 5% on the Nasdaq in the middle of the day on Thursday.