Streaming video service Netflix Inc on Thursday raised monthly charges in the United States for its standard and premium subscription plans , a move that sent the company ’ s shares climbing nearly five per cent .
Netflix increased the cost of its standard subscription by $ 1 a month to $ 14 , and the price for the premium tier rose by $ 2 per month to $ 18 .
The Economic Times of India reported that the standard plan , the company ’ s most popular , enables two streams at the same time, while the premium plan allows for four simultaneous streams .
The price increase was the first for the US customers since January 2019 .
Shares of Netflix jumped 4 . 8 per cent to $ 509 . 53 in afternoon trading on Nasdaq .
Netflix , the world’ s dominant streaming service , enjoyed a boom in subscriptions at the beginning of the year as viewers around the world were told to stay at home to help fight the coronavirus pandemic .
The company expects to end 2020 with more than 200 million streaming subscribers around the world , with 73 million of those from the United States and Canada .
It also is facing a growing list of competitors including Walt Disney Co ’ s Disney+ , HBO Max from AT& T Inc and Apple Inc ’ s Apple TV + .