Netflix To Increase Prices As Much As $2 Per Month For New Subscribers

SAN FRANCISCO (AP) — Netflix is preparing to raise its Internet video subscription prices by as much as $2 per month this summer to help pay for more programming such as its popular political drama “House of Cards.”

The price increase will be imposed on new customers by July. The company says current U.S. subscribers will continue to pay $8 per month for a “generous time period.”

Netflix announced the price increase as part of its first-quarter earnings released Monday.

Investors evidently liked the move. The company’s stock surged 6 percent in extended trading after the results came out.

Netflix Inc. earned $53 million, or 86 cents per share, during the first three months of the year. That compared to $2.7 million, or 5 cents, last year.

Revenue rose 24 percent to $1.3 billion.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


One Comment

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Sacramento

Get Our App
Get The CBS Sacramento Weather AppGet the latest radar, CBS13 AppCasts and hour-by-hour forecasts. You can also send your weather pics.

Listen Live