The streaming media company said Friday it is raising the prices on its standard plans in the United States and Canada.
In the United States, the subscription price for the standard plan rose $1.50 to $15.49. The basic plan went up $1 to $9.99 and the premium plan increased $2 to $19.99
In Canada, the price for Netflix’s standard plan also went up $1.50 to $16.49 Canadian. The premium plan went up $2 to $20.99 Canadian. Its basic plan was unchanged.
Netflix’s stock rose roughly 2% following the news.
The pricing increase comes a week before the streaming company is set to announce its fourth quarter earnings.
But the reason behind the company’s move is pretty simple: It has been spending billions of dollars on content, and as streaming becomes more integral to the entertainment landscape, growth for companies like Netflix tends to slow attracting new subscribers gets harder.
At that point, revenue needs to come from somewhere. Raising prices on consumers is an easy way to get it.
Netflix also reported in those earnings that it added roughly 70,000 subscribers in the US and Canada. That was improvement from a loss of subscribers in the second quarter, but up only about 1 million subscribers from year-earlier totals in those countries.
The company said it has 74 million members in the US and Canada, but that growth in those regions has become saturated.