Netflix hikes its monthly subscription plans in the U.S., Canada

Netflix Inc. has increased its monthly subscription price by $1 to $2 per month in the USA, depending on the plan. The online video aggregator said the pricing raise would help pay for new programming to compete in the crowded streaming T.V. market.

Netflix's standard plan now allows for two simultaneous streams and costs $15.49 per month, up from $13.99 in the U.S.In Canada, the standard subscription is currently priced at C$16.49, a hike from the previous C$14.99.

Netflix's subscription price hike has almost become an annual tradition in the U.S. and Canada. The price hike will be effective immediately for new users. Existing subscribers will be given a 30-day notice in advance of their price hike.

After the price hike was announced, Netflix's shares rose by nearly 3% to $533.84 on the NASDAQ. The shares closed at 1.3% higher at $525.69 per share.

The world's largest video streaming service faces more competition than ever from companies looking to attract viewers to online entertainment. Netflix's direct rivals Walt Disney Co, AT&T's Warnermedia, Apple Inc., and Amazon.com Inc are pouring billions of dollars into new programming.

Netflix's premium plan, which allows four streams at a time and ultra H.D. streaming, was increased by $2 to $19.99 per month in the United States. Netflix's basic plan, with one stream, the price increased by $1 to $9.99 per month.

Meanwhile, the premium plan was hiked in Canada by C$2 to C$20.99. However, the basic plan remained unchanged at C$9.99.