Netflix's Stock Price is now at $525.69.
The Netflix stock went up as much as 3% on Friday, Jan.13, triggered by the announcement of Netflix increasing its subscription in the U.S, Canada, and later on in other countries.
The increase is seen on Netflix's website with, the monthly basic plan increasing from $1 to $9.99.
The standard plan is now priced at $15.49 from $13.99. The premium plan is also at no exception, $17.99 to $19.99, as reported by CNBC.
The massive price adjustment was confirmed by a Netflix official.
In a statement, the spokesman stated that they are changing their fees so that they can continue to offer a wide choice of quality entertainment alternatives.
However, this isn't the first time that Netflix increased its subscription as Netflix's pricing in the United States has already experienced a price hike during 2019 and 2020.
Netflix Subscription
The streaming giant has raised its fees in the past few years as part of its long-term strategy.
Far more ahead than any of its new competitors, Netflix announced last October that it has over 213 million subscribers throughout the world.
As a result, it is estimated that the company will spend $17 billion on content in 2021, as it has been substantially investing in content production for its service.
Netflix is up against more competition than ever before, particularly from newer streaming services, such as Disney+, HBO Max, Amazon Prime Video, and Apple TV+.
Netflix Stock Price
According to Yahoo Finance, Netflix stock price ultimately rose 1.25% to close at $525.69 on Friday.
From mid-2020 to mid-2021, Netflix added fewer than 17 million net new members and fewer than 1 million on a net basis in North America in the year after its massive boom in the midst of the pandemic.
As reported by MarketWatch, for expansion, the company has leaned heavily on international markets, even reducing prices in India, where Amazon is of great competition.
Netflix stock price is at +6.49, while Amazon is at +0.57%, and Walt Disney Co. is at -2.25%.
Netflix shares jumped from roughly $515 a share to more than $530 at noon Pacific time, and the shares closed at $525.69, a 1.3% increase on the day.
Netflix Price Increased Subscription
For new customers, the increases will take effect immediately.
Existing customers will receive an email notification in the near future, after which they will have 30 days to adjust their prices.
According to The Motley Fool, the previous Netflix price increase has already been a year on 2021, and it was only implemented for subscribers under the standard and premium plans.
However, this latest jump in prices will include nearly all subscribers.
According to Netflix, the move will bring in more cash, which will be pivotal as it would be used to fund the acquisition of new entertainment material for its members.
Competition for streaming services has now been tough, so it'll be fascinating to see if Netflix still has the ability to raise its prices without seeing a significant increase in subscription turnover of subscribers.
