- Accuracy in Media - https://www.aim.org -

Netflix plans on Increasing Prices as User Base Grows

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.

house of cards [1]Reuters reported [2] 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 [3] last June and have resurrected the old hit TV show “Arrested Development [4].” Some in Hollywood are worried that Netflix could be costing them [5] at the box office.