It's getting a bit more expensive to subscribe to Netflix in the U.S.
The streaming giant has upped the cost of two of its plans, its first price increase in a year-and-a-half.
The standard plan, which let's people stream on two screens at the same time and features access to Netflix's HD library, will cost $1 more, going from $13 per month to $14 per month. The highest-price premium plan, which allows up to four streams at the same time, will increase by $2 to $18 per month.
Netflix is keeping its cheapest offering, the basic plan, at $9 per month. That option only allows for one stream and does not give the subscriber access to HD programming.
Netflix last raised prices in the U.S. in May 2019. That means that, in less than two years, the price of its standard plan has risen by $3 and the price of its premium plan has risen by $4.
The price increase comes as Netflix has seen significant growth in the U.S. amid the global coronavirus pandemic. The U.S. and Canada accounts for nearly 73.1 million of its 195 million global subscribers. The average revenue per subscriber in the U.S. and Canada during over the summer was $13.40. The company is making a bet that consumers will continue to shell out for the service even at the slightly higher price point and as they face greater subscription streaming options. In the last year, four new services have entered the market, Disney+, Apple TV+, Peacock and HBO Max. Of those services, only HBO Max charges more for its service than the standard Netflix plan.
Investors were pleased with the news of the price increase, which is sure to drive the company's domestic ARPU up and to help it grow its overall revenue. The stock traded up more than 5 percent midday on the Nasdaq.