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LOS ANGELES, California: Netflix has raised its monthly subscription price from $13.99 to $15.49 per month in the United States.

Company officials said the increase was necessary to pay for new programming due to increased competition in the streaming entertainment industry.

In Canada the standard plan rose to C$16.49 from C$14.99.

Meanwhile, shares of Netflix increased nearly 3 percent to $533.84 on Nasdaq and closed at $525.69 following news of the price rises.

This is the first Netflix price increase since October 2020, and takes effect immediately for new customers.

Existing members might see the new prices reflected in their next monthly bills.

“We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always, we offer a range of plans so members can pick a price that works for their budget,” a Netflix spokesperson said.

Netflix faces increased competition, including from Walt Disney Co, AT&T Inc’s WarnerMedia, Amazon.com and Apple, who are pouring billions into new programming.

Netflix earlier said it would allocate $17 billion for programming in 2021.

Other new pricing went into effect for Netflix premium plan, which increased by $2 to $19.99 per month. within the U.S.

Netflix reported having 74 million subscribers in the United States and Canada, as of September 2021.