Netflix stock saw a jump after its quarterly profits report beat forecasts. The streaming video company also said it’s raising prices for new subscribers by $1 to $2 a month.
Existing members won’t see their subscription fees go up any time soon, though, and new members still have some time to get the cheaper price; the increase won’t happen until the end of June.
The slower rollout of the price hike contrasts with Netflix’s abortive attempts several years ago to split its DVD rental and streaming services to charge separately for each, which lost them subscribers and hurt their stock price.
James McQuivey, an analyst with Forrester Research, says as Netflix has grown its user base and built up its streaming video library, consumers may find the content worth the fee increase.
If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air. But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.
Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.
When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.