Analyst Note| Neil Macker, CFA |
Netflix raised prices across the board in the U.S. and Canada on Jan. 14 as the firm continues to search for methods to grow revenue in the face of slowing subscription growth in its single biggest market. The price of the firm’s standard plan will increase by $1.50 to $14.49 per month, the premium plan by $2 to $20 per month, and the basic plan by $1 to $10 per month. The increase is the sixth for the standard plan that debuted in Nov. 2010 at $8 per month. Netflix waited for three and half years to enact its first price hike on the standard plan but has increased pricing four times since October 2017. The increases should help offset the impact of recently announced lower pricing in India, where Netflix has fallen well behind Amazon and Disney.