Netflix share price up 1% after announcing price increases

The streaming company announces the second rate increase in a year.

Netflix logo after Netflix raises prices Source: Bloomberg

Netflix share price is up after the streaming company announced that it is increasing prices again. US subscribers will see a price increase in their bills starting in May.

Why is Netflix raising its prices?

Netflix is raising its prices for the second time since January because the corporation is spending billions of dollars to provide thousands of hours of content to viewers. In 2018, the company budgeted $8 billion for original shows and movies to attract more customers, especially outside North America.

Netflix new prices: key figures

Basic plan previous price $8 New price $9
Standard plan previous price $11 New price $13
Premium plan previous price $14 New price $16

Netflix new prices

Subscribers who have the basic plan without HD see an increase from $8 to $9. Standard plan viewers who have HD access on two devices will have a rate hike from $11 to $13. Netflix customers who have the premium plan and can watch HD content on four devices will have to pay $16 instead of the current $14.

Why is the US Justice Department involved with Netflix?

The US Justice Department has intervened in the conflict between Netflix and the Academy of Motion Pictures Arts and Sciences. The Oscars organization wants to keep the streaming company from being considered for Academy Awards because Netflix films aren’t shown in theaters.

The Justice Department wrote a letter to the Oscars association warning that excluding Netflix from the Oscars could be considered an antitrust anti-competition violation.

‘In the event that the Academy — an association that includes multiple competitors in its membership — establishes certain eligibility requirements for the Oscars that eliminate competition without procompetitive justification, such conduct may raise antitrust concerns,’ said the Justice Department in the letter.

Netflix responded to the controversy by touting the company’s ability to provide customers easy access to a wide variety of films.

‘We love cinema. Here are some things we also love. Access for people who can’t always afford, or live in towns without, theaters. Letting everyone, everywhere enjoy releases at the same time. Giving filmmakers more ways to share art. These things are not mutually exclusive,’ said Netflix in a statement.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

See opportunity on a stock?

Don’t miss your chance. Try a risk-free trade in your demo account, and find out whether your hunch could have paid off.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Trade a wide range of popular global stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform, when it matters

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.