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Amidst Netflix's announcement that its first-quarter estimates were higher than expected and its subscription base grew, the streaming service revealed intentions to raise prices.
Net profit for the company rose to $53 million for the first quarter, with revenue passing the $1 billion mark, reports USA Today. Analysts had expected 83 cents a share out of the first-quarter and Netflix managed 86 cents. The first-quarter results even beat Netflix's own estimated $48 million net profit.
With that positive reveal, the company also said that prices for new subscriptions would be increasing, and eventually for current subscribers.
CEO Reed Hastings and CFO David Wells said in a shareholders' letter, "Our current view is to do a one or two dollar increase." They added, "Existing members would stay at current pricing (e.g. $7.99 in the U.S.) for a generous time period."
That increase is in line with what Businessweek reports with increases Netflix made to prices in Ireland in January. There it was raised one euro a month.
Hastings explained the reason for the rise was because "If we want to continue to expand to do more great programming we have to eventually increase prices a little bit. We're not doing much."
There was no mention of when the price increase would go into effect.