Netflix is raising prices for video streaming customers in the U.S. and Canada, less than a year and a half since its last price increase, as competition from other streaming services increases.
The Los Gatos, California, company said Friday that prices are going up by $1 to $2 depending on the plan. The standard plan that most people take is going to increase by $1.50 to $15.50. The Canadian version is going up by the same amount in local currency to $16.50 Canadian dollars.
Price increases are becoming more of a regular feature on Netflix, which is facing saturation in the U.S. market. The plans vary based on variables like the number of screens users can watch Netflix on at the same time and the number of phones or tablets that can have downloads. The company still mails DVDs in a service that requires a separate plan.
The price increase is effective as of Friday. Customers in New York, Alabama and Louisiana also got hit with a new sales tax bill, which Netflix says was due to the addition of video games to the service.
There is the risk that people will cancel if prices are raised. Netflix is the dominant U.S. streaming service, but others, such as HBO Max and Disney, have increased in popularity.
After news of the price increase came out, Netflix shares gained in late trading. The stock closed up $6.49, or 1.3 percent, to $525.69. The company reports its fourth quarter financial results on Thursday.