Netflix is raising prices in the US and Canada
Source: @Pixabay
Netflix shares eventually rose 1.25% to close at $525.69 on Friday. This comes after Netflix increased its monthly fees. Monthly costs for the base plan went up $1 to $9.99, the standard plan jumped from $13.99 to $15.49, and the premium plan went up from $17.99 to $19.99, according to the Netflix website. Canadian prices also increased.
"We're updating our pricing so we can continue to offer a wide selection of quality entertainment," the spokesperson said in a statement.
Wall Street is counting on Netflix to raise prices as subscriber growth wanes. Netflix's price increase also reflects the firm's belief that its plans are embedded in the lives of its subscribers and that they will not cancel or cancel because of price increases.
Netflix said Friday that subscribers will receive an email about a price increase 30 days before they see an increase. And Netflix reports quarterly earnings next week.