Canadians will soon need to pay more to watch series and movies on Netflix. The company has raised the price of its plans for both new and existing users. While the rise has been already implemented for new subscribers, existing users will be notified through email before new rates are charged from them.
In a statement released by Netflix, the company cited addition of new content and introduction of new features and services as the reasons behind the price rise. It said that Netflix adjusts the pricing of its packages from time to time as they introduce new movies, exclusive TV series and upgrade their platform to offer better services to its customers.
Your Favourite Netflix Movies and Shows are Going to Cost More!
The company has a huge database of content and also produces its own original content which has become popular like House of Cards. It also has a large number of movies sourced exclusively from international film festivals. Few of USA TV shows are also aired by Netflix in Canada like CW’s Riverdale and ABC’s Scandal.
Netflix has a growing market in Canada and in 2016 it had around 5.2 million subscriptions. The television streaming market is quite competitive in Canada and many leading names are fighting out with each other.
Brands like Amazon prime are quite a hit in the country having Canadian airing rights of highly rated shows such as American Gods and Mr. Robot. CBS All Access is also set to enter the Canadian market sometime in 2018 with its 9,000 episodes from various shows. The multiple numbers of competitors and the fight to acquire rights for shows has increased the acquisition cost of the content. Though Netflix did not mention it in their statement, still it is a situation faced by all companies in Canadian television industry.
Netflix increased their prices last year in May while introducing the feature of streaming in high quality on multiple devices. This time the increase has been $1 for the basic plan making it $8.99 per month. Users can only stream standard quality videos on a single device at a time. The cost of the standard plan has also gone up by $1 ($10.99 per month) which permits subscribers to access content on two screens. Subscribers of the premium plan now have to shell out a monthly $13.99, which is a $2 increase from the previous price. Users can view high definition 4k videos simultaneously on four screens with this plan.
The company changes its prices based on local market conditions in a country. The Australian subscribers had to pay few dollars more after Netflix raised the prices in June countering the increase in local taxes. It remains to be seen how the users will respond to the move.