Netflix Inc. shares rose as much as 3.7% on news that the company is raising the price of its service in Japan, bolstering revenue in an increasingly key market for the streaming giant.
Starting Friday, prices for Netflix¡¯s basic and standard tiers will go up by about 13%, with the premium plan remaining unchanged. Japan¡¯s Nikkei newspaper previously reported on the increase.
Asia is Netflix¡¯s second-fastest growing region, with Japan and South Korea fueling the expansion. The company also has stepped up investment in anime, which is hugely popular in Japan.
¡°We¡¯re updating our prices so that we can continue to offer more variety of TV shows and films ¡ª in addition to local shows such as ¡®Alice in Borderland,¡¯ and our ever-growing anime lineup,¡± Netflix said in a statement. ¡°As always, we offer a range of plans so that people can pick a price that works best for their budget.¡±
Investors applauded the move, sending the stock as high as $559.48. Price increases have helped Netflix shore up its finances and pay for its industry-leading production budget. The shares had been little changed this year through Wednesday¡¯s close.
Netflix¡¯s basic plan will climb to ?990 a month from ?880, while the standard tier rises to ?1,490 from ?1,320. The premium plan remains ?1,980.
In the U.S., Netflix¡¯s standard tier, its most popular offering, is $13.99. The Japanese equivalent will now be roughly the same in U.S dollars.
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