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Tuesday, April 22, 2014

Netflix Will Raise New Customer Subscription Rates

Posted By on Tue, Apr 22, 2014 at 9:41 AM

Netflix is flexing more of its muscle, exploiting its ever-growing subscriber base by saying it will increase subscription prices for new customers by one or two dollars a month in the coming months.

Current U.S. customers, who pay about $8 per month, won't immediately be affected by the new increase.

In its first-quarter 2014 earnings announcement, unveiled April 21, when it boasted of strong earnings and subscription growth, Netflix also announced it would jack up its prices for new subscribers. Netflix said it had added 2.2 million new streaming subscribers just in the first three months of this year. To date, Netflix has nearly 36 million subscribers in the U.S. and over 48 million globally.

Netflix has seen particular growth since showcasing its award-winning original programming, led by House of Cards, which launched its second season this past February. Another original Netflix series, Orange is the New Black, opens its second season in June.

At the opening bell on the NASDAQ exchange this morning, shares of Netflix took an immediate jump. Shares were up 6 percent by mid morning.


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