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August 11, 2017

Netflix increases Canadian prices by up to $2 a month

by John_A

Netflix is taking a gamble that Canadian customers are addicted enough to eat the extra cost.

Netflix is increasing prices for Canadian customers between $1 and $2 depending on the plan. From Canadian Press (via CBC):

The popular video streaming service is hiking prices for new members effective immediately. It will do the same for existing users after notifying them by email in the coming weeks. Netflix’s standard plan will now cost a dollar more — or $10.99 a month — to watch content on two screens at a time.

The basic plan, which does not offer high definition video and only permits one streaming screen at a time, also goes up a dollar to $8.99 a month. Premium plan subscribers will pay $2 more for up to four simultaneous streams and ultra high-definition 4K content. It will now cost $13.99 monthly.

It’s the first price increase in nearly two years that affects subscribers in Canada.


What’s interesting here is that Netflix is announcing this price increase only days after it became clear that competitors like CBS and Disney, which owns ABC, Marvel, Disney and the Star Wars brand, sees the potential for significant market share in Canada as more people cut the cord.

Netflix used to have a significant disadvantage here in Canada, but since it pivoted to a lineup that emphasizes its own licensed and commissioned content, that content divide with the U.S. has largely faded. Netflix is still the only streaming service in Canada to offer Star Wars: The Force Awakens as well as the standalone Rogue One, and that relationship, despite Disney announcing its plans to pull its content from Netflix U.S., won’t affect Canadian customers anytime soon.

Some of the price increase can be attributed to continued weakness in the Canadian dollar, which is hovering around $0.80 USD.

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