WASHINGTON — Netflix, which has had its ups and downs the past several years, saw its quarterly profits more than double with an increase by $1 in its monthly charge for video streaming.
Reuters reported that shares for the company went up 1% in after hours trading, which was boosted by news that Netflix expects average revenue to rise as their $9-a-month plan is luring in new customers.
The price increase came in May, which was the first price hike in the U.S. in three years. They saw an addition of 570,000 customers in the U.S. and 1.12 million in international markets.
Soon, Netflix said, it will expand into Germany, France, Austria, Switzerland, Belgium, and Luxembourg in September 2014. It could reach more than double the U.S. market at 180 million broadband households.
Their success has been their investment in original series like “House of Cards” and “Orange is the New Black.” These original shows are challenging cable networks and Hollywood for popularity, which has raised concerns in the movie and TV show industries.