Netflix Plans To Raise Prices By "$1 or $2 a Month"

New submitter Burphytez (3625571) writes with this excerpt of a Reuters story, as carried by the Chicago Tribune: "Video streaming service Netflix Inc said it intends to raise the monthly subscription price for new customers by $1 or $2 a month to help the company buy more movies and TV shows and improve service for its 48 million global subscribers. Investors welcomed the announcement by Netflix, which had suffered from a consumer exodus and stock plunge after it announced an unpopular price increase in July 2011. The company's shares jumped 6.7 percent in after-hours trading to $371.97, after the company released plans for a price hike and posted a rise in first-quarter profit that beat Wall Street expectations."

Milk that cow!

[B33rNinj4]

I guess they found a way to cover the costs of their deal with Comcast.

Fine logic

[LookIntoTheFuture]

Investors welcomed the announcement by Netflix, which had suffered from a consumer exodus and stock plunge after it announced an unpopular price increase in July 2011.

Well, the first price increase cost us customers so the stock plunged. What will make the stock soar? A price increase!

Re:Milk that cow!

[Mashiki]

Doesn't really matter anyway, even at raising the rates for new customers by $1-2, it's still got more value than cable or sattelite TV by leaps and bounds. That's pretty scary isn't it? Especially with all of the crap programming and reality TV garbage that they have on these days. I sadly remember when things like History, NatGO, Discovery and TLC had something worthwhile on them. The last time I watched them when I was in the US(last year) it was wall-to-wall reality TV programming. Good riddance to them.

Re:Milk that cow!

[SJHillman]

The really curious part is the fact that Netflix is so much cheaper than cable *in spite of not having commercials*. The fact that you pay for cable TV only to be bombarded with commercials is a slap in the face that most people are too willing to accept.

Re:....profit

[wonkey_monkey]

2. Announce forthcoming price rise applicable to new customers as of a future date
3. Watch those people who were previously on the fence about it sign up to avoid the price hike
4. ???? ...and so on.

Re:Milk that cow!

[Stéphane V]

Netflix pays for data management and don't pay for infrastructure throughout the US or where they give service. On the other hand the provides that gives cable or cable service, they have to pay for the physical infrastructure and the data management. In other words. your cable provider pays for everything...thats why its not cheaper with them instead of netflix

Re:Milk that cow!

[cpotoso]

What are you smoking?? WE pay for the internet service (monthly bill, anyone?). So why should Netflix have to pay on top of that?? The infrastructure? Yes, coming from your monthly bill. Duh!