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Netflix Raises Prices In U.S. And Canada; Stock Perks Up

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Netflix is raising prices in the U.S. and Canada, with its most popular subscription tier going from $13.99 a month to $15.49 in the U.S.The lowest level of service climbed $1 to $9.99 and the premium tier is now $19.99, up from $17.99.In Canada, the basic plan price did not change, but the standard plan (aka the middle tier) rose to $16.49 Canadian from $14.99.Shares in Netflix immediately jumped on the news, reaching as high as $538 before calming down to close at $525.69, up 1%.

It has slumped thus far in 2022 along with most other Nasdaq stocks.The price increases are the first in North America since October 2020 and take effect for all new subscribers and will be phased in for current ones in the coming weeks.With 214 million global subscribers, Netflix remains the leader in streaming and its scale gives it considerable leverage in terms of price.

North America is a major financial engine for the company overall, even though growth there has flattened of late and the base of 74 million customers is just one-third of the overall total.

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