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Netflix Plans Price Raise as Streaming Subscribers Grow (Reuters)
Video streaming service Netflix Inc. said it intends to raise its subscription price for new customers by $1 or $2 a month to help the company buy more movies and TV shows and improve service for its 48 million global subscribers. WSJ Netflix said the price increase for the $7.99 a month service, the first since 2011, would help pay for its continued investment in original programs, including series such as House of Cards and Orange Is The New Black. Netflix has committed to spend billions of dollars in programming in the past few years as it has grown to become the biggest stand-alone subscription programming service in the U.S., passing some long-standing traditional TV outlets like HBO in terms of subscribers. Mashable Current subscribers would stay at the $7.99 price for a “generous time period,” the company wrote in a statement to investors. “Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only,” the company wrote. The news came as Netflix announced that it added 4 million new members in the first quarter of 2014, as the company beat revenue and profit expectations. Variety In after-hours trading Monday, Netflix’s stock climbed as much as 7 percent to $372.05 per share, after closing up 0.8 percent for the day at $348.49. Netflix also said that in the second quarter of 2014, it will launch the first pay-TV integration of its service in the U.S. That’s after lining up deals with European providers including the U.K.’s Virgin Media to provide access to the unlimited streaming-video service through operator-supplied boxes. Deadline New York The company generated $53.1 million in net income in the first quarter of 2014, up from $2.7 million in the same period in 2013, on revenues of $1.27 billion, up 24 percent.