LOS ANGELES: Video streaming service Netflix Inc said it intends to raise the monthly subscription price for new customers by US$1 or $2 a month to help the company buy more movies and TV shows and improve service for its 48 million global subscribers.
The company's shares jumped 6.7% in after-hours trading to US$371.97, after the company released plans for a price hike and posted a rise in first-quarter profit that beat Wall Street expectations.
Chief Executive Reed Hastings said Netflix had improved its selection of TV shows and movies and added original series like critically acclaimed Kevin Spacey thriller "House of Cards." With added revenue from higher prices, "we will be able to license much more content and deliver it in very high quality video," Hastings said on a webcast.
The company, in a quarterly letter to shareholders, said it plans to impose "a one or two dollar increase, depending on the country, later this quarter for new members only."
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