“Netflix Inc.” has recently said that it will be raising the price of its most popular streaming subscription plans by $1 per month. This brings the new monthly rate to $9.99. Moreover, the said rate will be applicable to Netflix customers in the U.S., Canada as well as some parts of Latin America.
According to Bloomberg, this rate hike comes after “Netflix” had also increased the subscription rate in Europe by one euro just last August. Meanwhile, the price increase for the US, Canada and selected Latin America markets is only aimed at the plan that allows two viewers to take advantage of a Netflix subscription at once. Neither one-screen nor four-screen plans are actually affected.
During the company’s second fiscal quarter, Netflix was proud to say that the company has now reached an impressive 65 million subscribers, 42 million of which are in the US while 23 million are in various international markets.
During the said quarter, Netflix had reported achieving a little over $1.4 million in revenue, a slight increase from the $1.4 million in revenue it had achieved during the first quarter. For both quarters, majority of the revenue came from US streaming with paid memberships up slightly from 40.32 to 41.06 million.
Meanwhile, during an earnings interview for the second quarter, Netflix, Inc. Chief Executive Officer Reed Hastings was asked about the possibility of increasing prices, taking into account the elasticity of its price points. To this, Hastings has said that he believes in incentivizing subscribers to move up to a higher plan, preferably the two-stream, high-def and ultra high-def. However, the company wants to take it slow and steady, building on adding value to the service and then pricing it appropriately.
Meanwhile, the company is looking at a revenue of around of $1.5 million for the third quarter. Netflix says it will announce third quarter results on October 14.