October 9, 2020
Netflix is raising the price of select monthly subscriptions in Canada, effective immediately for new members — and within 30 days for existing subs. Netflix has less than 7 million subscribers in Canada, according to Statista.
The standard plan affording subs access to two screens simultaneously in HD now costs $14.99 (Canadian) from $13.99; the premium plan (four-screen use in 4K UHD) costs two dollars more at $18.99. The basic plan, which enables subs to watch one screen at a time with lower quality resolution, remains unchanged at $9.99.
“Canadians have never had more choices when it comes to entertainment and we’re more committed than ever to delivering an experience that exceeds their expectations,” Netflix said in a statement. “As always, we will continue to offer a range of plans so that people can pick a price that works for their budget.”
Netflix, which launched its first international operations in Canada in 2010 priced at $7.99 monthly, last raised prices north of the border in 2018. The SVOD behemoth said the price increase would help sustain operations and improve content offerings.
Analysts have long suggested Netflix should increase prices in the near-term due to escalating content spending, the service’s market leader status and a two-year gap since the last price hike.
Rich Greenfield with Lightshed Partners contends Netflix is 85% more expensive than Disney+ ($12.99 vs. $6.99), yet Netflix consumption is five times larger. Even when adjusting for Netflix having twice the number of subscribers as Disney+, user time spent on the platform is 160% more than Disney+.
“We continue to expect to see Netflix move pricing higher by early 2021, particularly as its content advantage increases versus its peers,” Greenfield wrote in a post. “The fact that Netflix is larger than two competing apps that are free, illustrates just how important the service has become to consumers.”