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Netflix has increased monthly subscription rates in the United States and Canada

Netflix has increased monthly subscription rates in the United States and Canada

LOS ANGELES, Jan 14 (Reuters) - Netflix Inc has raised its monthly subscription price by $1 to $2 per month in the United States, according to the company on Friday, to help pay for new programming to compete in the crowded streaming TV market.

The standard plan, which allows for two simultaneous streams, costs $15.49 per month, up from $13.99 in the United States.

In Canada, prices rose, although the standard plan increased to C$16.49 from C$14.99.

Following Reuters' announcement of the price rises, Netflix increased by nearly 3% to $533.84.

The increase, the first in those markets since October 2020, took effect immediately for new customers. Existing members will see the new prices in the coming weeks when they receive their monthly bills.

"We understand that people are more likely to choose to engage in entertainment than ever, and were committed to providing an even better experience for our customers," said a spokesperson for Netflix.

"We're upgrading our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can select a price that matches their budget," the spokesperson said.

The world's largest streaming service is facing the most competition from companies looking to attract viewers to online entertainment. Walt Disney Co, AT&T Inc's WarnerMedia, Inc, and Apple Inc are among the companies investing billions into new programming.

Despite prior price increases, Netflix has added customers, which shows its members have agreed to accept higher costs, according to Evercore ISI analyst Mark Mahaney.

"This is evidence that Netflix has pricing power," Mahaney said.

Netflix had stated that it would spend $17 billion on programming in 2021, but it has not disclosed the spending for 2022.

The price of Netflix's premium program, which allows four streams at a time and ultra-HD, increased by $2 to $19.99 per month.

In Canada, the premium rate grew by C$2 to C$20.99, and the basic rate rate remained unchanged at C$9.99.

Netflix's standard price is now $15.49 per month, which means it costs more than its competitors. HBO Max, owned by AT&T Inc, is currently offering an $11.99-a-month promotion for 12 months.

The price of Walt Disney Co's Disney+ is $7.99 per month or $79.99 per year.

As of September 2021, the United States and Canada was Netflix's largest country with 74 million streaming customers, accounting for about 44% of the company's revenue.

The majority of the company's recent increase in subscribers has come from abroad.

Netflix's subscriber growth slowed in the wake of the COVID-19 epidemic, but was rebounded by the help of the global phenomenon "Squid Game," which was released in September. Total global subscriptions sailed to 213.6 million.

Netflix will publish its quarterly earnings for 8.5 million subscribers from October to December, according to Thomson Reuters I/B/E/S data.

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