Netflix Plans to Raise Prices Soon but Current Subscribers Will Catch a Break

by Techvibes NewsDesk

Netflix plans to raise the cost of its monthly subscriptions by up to $2 in some countries, including the US and Canada, the company revealed this week.

The modest price increase won't affect current users, however; Netflix says existing subscribers will enjoy current rates ($8 in Canada) for a "generous" period of time.

The move isn't dramatic and most users aren't apt to complain about an extra dollar or two a month, but analysts affirm it will "dramatically increase revenue and profit estimates" for Netflix. The company right now has close to 50 million subscribers worldwide—adding $2 to the monthly cost of its service could add up to $1.2 billion in annual revenue. That's much-needed money as Netflix could spend up to $5 billion annually on content by 2016.

Netflix plans to expand its business to France and Germany later this year. Currently it operates in 41 countries, but still generates most revenue from North America.

Los Gatos, California, United States

With more than 15 million members, Netflix, Inc. [Nasdaq: NFLX] is the world’s largest subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. For $8.99 a month, Netflix members can instantly watch unlimited TV episodes and movies streamed to their TVs and computers and can receive unlimited DVDs delivered quickly to their homes. With Netflix, there are... more

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Techvibes NewsDesk

Techvibes NewsDesk

Techvibes is Canada's leading technology media property.Founded in 2002, Techvibes covers technology and business news that impacts Canadians. We combine breaking local news with international coverage to deliver a unique balance of insight and information. The Techvibes Newsdesk covers a broad beat and publishes general news stories. If you have a story you would like covered, email... more

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