WASHINGTON — Netflix, the popular video streaming service, said it will probably raise the monthly subscription price for new customers by $1-$2 a month to help the company acquire new TV shows and movies for their user base.
Reuters reported that the service serves 48 million global subscribers.
The price increase is the latest move for Netflix, which had seen huge blowback and a customer exodus after they announced a price increase in July 2011. Investors liked the move and saw shares jump as a result.
Netflix’s popular series, “House of Cards”, encourages investors and could be a model of future Netflix shows and acquiring movie or TV show talent and shows. They signed a deal with DreamWorks last June and have resurrected the old hit TV show “Arrested Development.” Some in Hollywood are worried that Netflix could be costing them at the box office.