Netflix, the world's dominant paid online video service, is raising the price of its most popular streaming subscription by $1 a month to $9.99 for new customers in the U.S., Canada and parts of Latin America, according to a person familiar with the plan.
Existing customers will have a grace period of varying lengths before prices go up for them, said the person, who asked not to be identified because the change hasn't been announced. The increase affects the plan that lets two viewers use a subscription at once. Prices for the so-called one-screen and four-screen plans aren't affected.
With more than 65 million subscribers worldwide, Netflix is counting on customer gains and higher prices to sustain revenue growth and finance the cost of its film and TV offerings. The company has $4.3 billion in programming costs over the next year, and almost $5 billion more for the following three years.
Netflix has said it plans to mostly complete its global expansion by the end of next year. It's added Australia, New Zealand and Japan in 2015 and is now in more than 50 countries.
The company raised European prices by one euro in August. That followed a 2014 worldwide price increase that marked the first since 2011.
-- Bloomberg News