Netflix announces $1 billion revenues and higher prices for new subscribers. Movie and TV service says $1-2 increase in monthly rate will not affect current customers and will go towards buying more content...
The Netflix headquarters in Los Gatos, California.
Netflix announced Monday that it would raise prices for new subscribers and use the new funds to buy more content. Netflix said revenues had passed $1 billion and its subscriber base had grown to 48 million members worldwide. The price increase will go into effect later this quarter and will add between $1 and $2 more per month, depending on the country subscribers live in. In the US Netflix subscriptions currently cost $7.99 per month for unlimited streaming. Current subscribers will not be affected by this price increase. The company has been testing a price increase in Ireland and said it had experienced “limited impact” from the January increase from €6.99 to €7.99.
Netflix last tried to introduce a price hike in 2011 in an attempt to separate its DVD-renting customers from digital only subscribers. But the plan proved a disaster and Netflix’s customers quit the service in droves. This quarter, the company announced a net profit of $53 million or $0.86 per share, for the quarter, beating analysts' estimates of 83 cents. Revenue jumped 24% to $1.27. Internationally membership grew by 1.75 million, bringing the total to 12.7 million. International revenues now account for 25% of Netflix’s total streaming revenue and the company said it expected international revenues to eventually surpass those in the US.
- House of Cards drama had attracted a “huge audience that would make any cable or broadcast network happy.”
- Netflix’s US streaming service added 2.25 million members to reach a total of 35.7 million.
- Internationally membership grew by 1.75 million.
- US Netflix subscriptions currently cost $7.99 per month for unlimited streaming.
- Netflix said revenues had passed $1 billion and its subscriber base had grown to 48 million members worldwide.
I think Netflix is a huge provider for many demographic audiences, it allows audiences to watch movies and programmes at any time. The provider also allows a thirty day free trail for audiences to experience the site therefore they could be subscribers in the future. I think raising up the revenues will not impact a large audience as the provider is very popular and targeted at many demographics such as nuclear families and young audiences. Furthermore as to new and digital media, the provider is available more on new devices attracting a larger audience to subscribe.
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