Content costs money, Netflix basically said Friday in announcing that it's raising prices. A subscription for a standard plan in the US went up $1.50 to $15.49, CNN reports. Premium rose $2 to $19.99, while basic climbed $1 to $9.99. The basic plan in Canada didn't change, but the standard offering is increasing $1.50 and premium $2. Rates last went up in October 2020. The increases have been steady; the standard plan was $11 as recently as 2019, per the Verge.
In explaining the increase, the company issued the same wording as last time, CNN points out: "We understand people have more entertainment choices than ever and we're committed to delivering an even better experience for our members. We're updating our prices so that we can continue to offer a wide variety of quality entertainment options." The increases hit new subscribers immediately, but the streaming service said existing customers will receive at least 30 days' notice.
Netflix has been investing millions in content while subscriber growth slows for such services, and actually dropped for the service in last year's second quarter. That leaves price increases as the way to raise revenue. Other services also have imposed increases. In October, Hulu raised its ad-supported and ad-free tiers by $1 a month. Netflix shares rose about 2% after Friday's announcement. (Read more Netflix stories.)