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Netflix To Raise Prices

Sunday, April 27th, 2014 by | Filed Under: TV Tech

The CEO of Netflix says the company is planning to raise the rate it charges for the popular streaming and DVD service.  He wouldn’t specify by how much, saying it would be about a “dollar or two” difference in the price per month.

He said the money was needed for the company to continue to produce original programing like “House of Cards” and to be able to get popular movies and television shows from other production companies.

The service currently streams popular programs like “House of Cards,” “Derek” and Turbo F.A.S.T. and have announced several new series including a comedy starring Jane Fonda and Lily Tomlin, a drama based on Marco Polo’s adventures, “Daredevil”, “Sense 8″ and “Narcos.”

The rate hike would hit new subscribers first, but at some point current subscribers would see their rates rise as well. But it could be a year or two before that happens.

The company had a pretty good first quarter, reporting a profit of $53.1 million dollars with a revenue of more than a billion dollars.  The company added 4 million new members in the first three months of 2014, bringing the total number of subscribers past 48 million.

The company says it also expects the international market, which now accounts for 25% of their business, to increase and eventually surpass the number of subscribers in the United States.

Netflix also touted the availability of 4K programming for new 4K televisions and said they planned to increase that content as 4K televisions grow in popularity.

 Competitor Amazon has also raised the price of  Prime Video membership by $20 a year. Amazon recently added a set-top streaming box called Fire TV which also features the Netflix services. In fact Netflix said they expected their app on Fire TV to be able to take advantage of the devices voice search shortly.

~ Cynthia

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One Response to “Netflix To Raise Prices”

  1. John Myers says:

    Myself and my wife saw no reason to “rent” movies. Just wait a couple of months and it will be free anyway. Some people out there renting out movies are making a killing at it. I have never rented from netfilx nor have I watched a movie at someones house who had rented one.

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