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▼ Netflix Climbs After Company Raises Prices By 13% In Japan

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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 — 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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