Netflix increased its regular monthly rates for the subscribers from $1 to $14 a month.
Netflix increases the price of its standard membership from $1 to $14 a month and premium subscription rise from $2 to $18 a month. The regular policy enable two streams simultaneously whereas the premium plan enables four streams at a time
For US-based subscribers, the price has changed for the first time since January 2019.
However, on Thursday the increase of subscription plans also leads to an increase in the company’s share by 5 percent.
During midday trading on NASDAQ, Netflix’s stock rises from 4.8% to $509.53.
Moreover, at the beginning of the year when people across the world were ordered to stay at home, the clients of the largest streaming service ultimately witnessed a rise. The company hopes to gain 200 million clients from around the world out of which 73 million to be expected from the US and Canada.
Disney+ from Walt Disney Co, AT&T’s HBO Max, and Apple TV+ from Apple are some of the competitors challenging the subscription-based streaming service.
Chief Operating Officer Greg Peters stated a week earlier after the update of the company’s revenue that the company saw the potential to boost prices in countries “where we have delivered the extra value.”
The spokesperson of Netflix shed light on the increase of prices on Thursday and told: “so that we can continue to offer more variety of TV shows and films – in addition to our great fall line up.”