Netflix Inc. said it plans to increase its U.S. prices for new
members by a dollar or two after seeing limited impact from pricing
changes in Ireland.
Any such increase would be Netflix's first such overhaul in the
U.S. since the video-streaming company's well-publicized stumbles
three years ago.
Netflix's current pricing plan offers unlimited streaming movies
and television episodes for $7.99 a month. In addition, Netflix
offers a one DVD out-at-a-time plan, also for $7.99 a month.
Netflix revealed the possible pricing changes--which the company
also hinted at earlier this year--along with its quarterly report.
In the first quarter, Netflix added 4 million U.S. streaming
subscribers in the first quarter, topping the company's
projection.
Overall, Netflix reported a first-quarter profit of $53 million,
or 86 cents a share, up from $3 million, or five cents a share, a
year ago.
The company in January had projected a profit of 78 cents a
share. Analysts polled by Thomson Reuters most recently expected a
profit of 83 cents a share.
The last major pricing change by Netflix came in 2011, when it
tried to move away from offering a single plan for streaming and
DVD-by-mail by introducing two separate plans. The company reversed
course after a customer backlash and a major dent in its stock
price.
Shares of Netflix, which are frequently volatile following the
company's earnings report, rose more than 2% after hours.
Write to John Kell at john.kell@wsj.com
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