Netflix Just Raised Prices. Could Amazon Prime Be Next?
Despite the COVID-19 recession, incoming competition in the streaming space, and a somewhat lackluster recent earnings report, video streaming leader Netflix (NASDAQ: NFLX) announced it would be raising prices for its monthly subscriptions in the U.S. last week. A standard plan will go from $13 to $14 per month, while its premium tiers will go from $16 to $18.
The raise was not unexpected, as Netflix has led the industry in content spending for years, burning through cash while racking up subscribers. With audiences highly engaged in streaming as they stay at home during COVID, Netflix decided to increase prices for the first time since January of 2019.
With Netflix raising prices amid a recession, will its rival in the streaming space, Amazon.com (NASDAQ: AMZN), raise the price for its yearly Prime subscription, which currently stands at $119, now $49 less than a yearly standard subscription with Netflix?
Source Fool.com
