The Internet video service (Netflix) is about to raise its prices for the first time in three years. One of the main reasons for this price change is to pay for more Internet video programming, an example would be the popular drama series “House of Cards”
The increase in prices will take place sometime before July, will be changed by $1 or $2 more per month for new customers. People who already have a Netflix account will not be affected by this change. The company currently has around 36 million subscribers that will continue to pay $8 per month for at least the next year. After that current customers will most likely have to pay more per month too.
"When we look at the shows and movies that we will be able to get if we have a bigger budget, it's exciting," Hastings told The Associated Press. "We want to make the service better and better so more people will join."
"I think they need to raise the price to remain profitable," Wedbush Securities analyst Michael Pachter said of Netflix.
Netflix's stock changed $23.01, or 6.6 percent, to $371.50 in extended trading after the company announced its plans.
