Breaking News Emails
Netflix, which posted better-than-expected quarterly earnings, said it will raise subscription fees for new members by as much as 25 percent.
The movie-streaming company's shares surged more than 6 percent in after-hours trading on Monday after its earnings edged past Wall Street expectations, while revenue was largely in line.
Netflix announced that it will increase membership prices for new subscribers by $1 to $2, depending on the country, later this quarter. Current Netflix members would stay at the current pricing, which is $7.99 per month, for "a generous time period."
"These changes will enable us to acquire more content and deliver an even better streaming experience," the company said in its letter to shareholders.
The company posted earnings of 86 cents a share on sales of $1.27 billion. Analysts had expected the company to report earnings, excluding items, of 83 cents a share on $1.27 billion in revenue, according to a consensus estimate from Thomson Reuters.