The streaming service giant announced the price hike on Jan. 14, raising monthly subscriptions by $1 to $2 per month in the U.S. and Canada. The standard plan rose from $13.99 to $15.49 stateside and from 14.99 CAD to 16.49 CAD north of the border.
The 4K, or premium, plan will now cost $19.99 per month. The price of the basic plan will remain at $9.99.
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New customers had to immediately comply with the increase, but some customers will first see the change starting next week when they receive their monthly bill. Netflix said current members should receive an email notification 30 days before their price change – unless they change their plan.
Netflix has added new customers after similar price increases, the last of which happened in October 2020. While it still ranks as the top streaming service in the world, Netflix faces increasing competition: Disney+ launched in late 2019 and has already obtained the fourth-most subscribers among streaming platforms.
Peacock, which launched on July 15, 2020, already has obtained the fifth-most number of subscribers, according to Screenrant.
And tech stocks experienced an immense fall-off in January: Netflix itself dropped from $610 at the start of the month to $376 as of Friday. Jan. 21 marked the biggest tumble as the stock fell 21.7% – the largest drop since July 25, 2012 when shares fell 25%.
Netflix hopes that its diversity of plans can help continue to attract new members.
"We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members," a Netflix spokesperson told Reuters. "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."
The main difference between the three plans comes down to number of simultaneous screens, number of devices with downloads and the quality of video.
The basic plan only allows for one screen, with that number doubling for each subsequent level, with premium allowing for four screens.