As updated on the company’s website, Netflix (ticker: NFLX) has increased the price of a standard subscription, which includes HD quality video and the ability to stream at two devices at the same time, to $15.49 a month, from $13.99. Basic service is now $9.99 a month, up from $8.99. Premium service, which allows up to four simultaneous streams, jumps to $19.99 a month, from $17.99.
The stock rose 1.3% to close at $525.69 on Friday.
In Canada, the standard plan is now 16.49 Canadian dollars, up from CAD14.99. The Canadian premium plan rose by 2 Canadian dollar to CAD20.99, while the basic plan remains CAD9.99.
Reuters reported on the price increases earlier Friday. The company confirmed the changes to Barron’s.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” Netflix said in a statement. “We’re updating 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 pick a price that works for their budget.”
Netflix said the update will roll out to existing members over the coming weeks. “They will be notified by email, as well as within the Netflix app 30 days before the new prices are applied to them,” the company said. “The exact timing will depend on the specific member’s billing cycle.”
Netflix will report December quarter results on Thursday. The company has projected revenue of $7.7 billion, up 16.1%, with earnings of 80 cents a share, and 8.5 million net new subscribers. Wall Street is expecting $7.7 billion in revenue and profits of 82 cents a share.
Write to Eric J. Savitz at [email protected]