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By Sam Boughedda
Investing.com — Shares of Netflix Inc (NASDAQ:NFLX) rose 3% to $534.93 after a report by Reuters said the streaming service has raised its monthly subscription price in the United States.
According to Reuters, the company has increased the monthly fee by $1 to $2 depending on the plan to help fund new programming. The standard plan is said to be rising to $15.49 per month, up from $13.99.
The news is a welcome boost to Netflix shares which have dropped 17.9% in the last three months.
The monthly price in Canada will rise to C$16.49 from C$14.99, the report said.
Reuters cited a Netflix spokesperson as saying: "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."
Before the opening bell on Friday, UBS analyst John Hodulik lowered Netflix's price target to $690 from $720 as he believes fourth quarter net subscription adds will likely come in below guidance.