Originally published on Tue April 22, 2014 10:11 am
Netflix, buoyed by its foray into original productions such as the political drama House of Cards, said Monday it has added 2.25 million new customers and plans to raise its new-subscriptions rate by $1 or $2 a month.
The video streaming service reported first quarter earnings of $53 million, or 86 cents a share. Its share price surged by 6 percent following the announcement of earnings that compared with $2.7 million in the same period a year ago.
Chief Executive Reed Hastings said Netflix had improved its selection of television shows and movies and, with higher revenue from the raising the price of new subscriptions, "we will be able to license much more content and deliver it in very high quality video," he said on a webcast, according to Reuters.
In a quarterly letter to shareholders, Netflix said it plans to impose "a one or two dollar increase, depending on the country, later this quarter for new members only."
In recent years, Netflix has ventured into producing original series to attract new subscriptions, with the acclaimed House of Cards, starring Kevin Spacey, and Orange is the New Black among them.