You can add “watching a movie at home” to the list of activities getting even more expensive for Canadians.
What happened: Netflix is celebrating hitting 300 million subscribers with a plan to raise prices in some major markets, including Canada, by the next billing cycle. The streamer says the increase will help pay for investments in programming, including more live events.
- The cost of a monthly subscription will go up by $2 to $7.99 for the lowest-priced, ad-supported tier, while the cost of standard plans will jump by $2.50 to $18.99.
Big picture: The streamer has invested heavily into live programming over the last year, paying an undisclosed amount to host a boxing match between Mike Tyson and Jake Paul, which drew 60 million households, making it the most-streamed live sporting event ever.
- A record 18.9 million new subscribers came aboard that quarter, during which Netflix also paid US$150 million to stream two wildly popular Christmas Day NFL games.
Why it matters: Netflix has built such a popular product it’s become less concerned about subscribers cancelling because of price. As CEO Ted Sarandos said on the earnings call, if you’re going to raise prices, you better make sure you have the goods to back it up.—LA