Netflix is on top of the world right now. On Monday, the company reported a huge jump in earnings from 5 cents a share last year, to 86 cents a share this year. That is a 17 fold increase. Revenue rose to $1.27 billion from $1.05 billion in 2013’s first quarter. Impressive to say the least.
Here comes the bad news for subscribers. Despite the earnings gain, Netflix is raising the price of its monthly service for new subscribers. Current subscribers will be given a break and be grandfathered for a “generous” time period. So if you are a current subscriber, you won’t notice any change in the $7.99 per month that you are paying now. That is good news.
Those thinking about subscribing to Netflix could end up paying $1 or $2 more than the current rate. Honestly that’s not bad at all, since Netflix keeps getting better and better. Netflix CEO Reed Hastings says that Netflix needs the added revenue to obtain more content and to improve the streaming experience. You can’t argue with that. Keep up the good job Netflix. Those earnings will likely increase.
Source Phone ArenaFiled Under: Technology News