As Alabama customers get hit with a sales tax for streaming services, a price increase comes as a result of the purchase of Netflix
Netflix is increasing its video streaming revenue in the United States and Canada in less than a year and a half since its, owing to competitor competition.
According to the Los Gatos, California, company, prices are increasing from $1 to $2 depending on the plan. The "standard" approach that most people take is increasing by $1.50, to $15.50, and the Canadian version is increasing by the same amount in local currency, to $16.50 Canadian dollars.
Netflix's price rises are becoming more a regular feature, as it is facing saturation in the US market. Of Netflix's 213.5 million subscribers, some 74 million are in the United States and Canada. It has invested in video games as it examines beyond movies and TV for growth.
Netflix's most expensive system is increasing by $2 to $20; its basic system is up $1, to $10. The plans vary based on the number of screens users can watch Netflix on at the same time and the number of tablets that can have downloaded content.
Netflix is urging customers to email and within its app before the new price is imposed on them. Customers in New York, Alabama, and Louisiana have also received a local sales tax bill, which Netflix claims was based on the addition of video games to the service.
The danger that people will cancel is increasing prices. Netflix remains the dominant US streaming service, but others, like HBO Max and Disney+, have increased in popularity.
After reports of a price increase came out, Netflix shares increased late in trading. The stock closed up $6.49, or 1.3%, to $525.69. The company is reporting its fourth-quarter financial results Thursday.