Netflix Increases Monthly Prices in US and Canada, Stock Rises 1.25%
LAHORE MIRROR (Monitoring Desk)– Netflix raised monthly prices for its streaming service in the U.S., sending the stock up as much as over 3% during trading on Friday.
Netflix stock ultimately rose 1.25% to close at $525.69 on Friday.
A Netflix spokesperson confirmed the change. “We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options,” the spokesperson said in a statement.
Netflix has been raising prices in previous years and it is part of the company’s long-term strategy. Netflix previously raised prices for U.S. customers in 2019 and 2020.
Wall Street has been counting on Netflix to increase prices as customer growth wanes. Netflix’s price increases also reflect confidence from the company that its plans are entrenched in its customers’ lives and that they will not cancel or churn because of price increases.
Netflix said on Friday that customers will receive an email about the price increases 30 days before they see the increase.