Netflix (NFLX) inventory rose barely in Friday afternoon buying and selling after the streaming platform raised the value of its subscriptions by $1-2.  

Netflix’s primary plan within the U.S. rose by $1 to $9.99 monthly. The usual U.S. subscription now prices $15.49 monthly, up from $13.99. Netflix’s premium plan was elevated to $19.99 monthly from $17.99. The rise was first reported by Reuters. 

The corporate will report This fall earnings on January 20.

“We perceive individuals have extra leisure selections than ever and we’re dedicated to delivering an excellent higher expertise for our members,” a Netflix spokesperson advised Reuters.

The worth will increase had not been pre-announced, although analysts have famous worth elasticity on the subject of Netflix subscribers amid stiff streaming competitors and a slowing consumer base because the pandemic winds down. 

Netflix’s third-quarter subscriber additions in 2021 rebounded from the prior three month interval partially due to a strong slate of content material, together with the hit Korean tv present “Squid Recreation.” A report 142 million individuals watched the present in its first 4 weeks.

Netflix emblem displayed on a telephone display and a laptop computer keyboard are seen on this illustration picture taken in Krakow, Poland on January 7, 2022. (Photograph by Jakub Porzycki/NurPhoto through Getty Photographs)

The corporate noticed a slowdown in subscriber progress within the first two quarters of final 12 months, including simply 5.5 million web subscribers complete, far fewer new customers than the report 25.9 million additions within the first half of 2020.

Through the firm’s final earnings report, the corporate mentioned it should swap to reporting hours seen for its exhibits as an alternative of the variety of accounts watched.

Concerning the value change, Netflix’s web site states, “These costs apply to new members and can regularly take impact for all present members. Present members will obtain an e-mail notification 30 days earlier than their worth adjustments, except they modify their plan.”

Netflix shares are down 11{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} year-to-date as buyers have just lately been rotating out of tech and progress shares amid the prospects of upper rates of interest later this 12 months. 

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Netflix raises subscriber costs forward of earnings