Netflix Shares Soar As Company Capitalizes On COVID-19, Hikes Prices

Just in time for the next round of lockdowns, Netflix is raising prices for its standard and premium plans, sending its shares surging more than 4% during the last hour of the trading day.

The company’s share price broke back above $500, which it lost after its disappointing Q3 earnings report earlier this month.

Here’s the Verge with more:

The new pricing for the standard plan is a $1 price increase (from $13 a month), while the new premium tier cost is a $2 increase (from $16 a month). New subscribers will have to pay the updated monthly fees, while current subscribers will see the new prices over the next few weeks as they roll out with customer’s billing cycles.

Industry insiders have long anticipated another round of price hikes at Netflix, which last increased subscription fees in the United States in January 2019. Recently, Netflix increased the cost of some plans in Canada. Netflix rolls out price changes on a country-by-country basis and the change “in the US does not influence or indicate a global price change,” a Netflix spokesperson told The Verge.

The hikes are only for US subscribers, and it comes on the heels of a price hike in Canada. Netflix told the Verge that it rolls out price changes on a country-by-country basis, and this latest hike “in the US does not influence or indicate a global price change.”

Netflix wasn’t the only stock to move on the news; Disney also moved higher, presumably on the notion that it the price hikes make the price of Disney’s ‘Disney+’ streaming service even more competitive.

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