Netflix Set For Another Price Hike

It seems Netflix is to raise its pricing yet again, according to its CEO. Reed Hastings told investors on Wednesday that the popular video-on-demand streaming service has plans in place to slowly hike up its subscription price.

“We want to take it very slow,” said Hastings. “Over the next decade I think we’ll be able to add more content and have more value and then price that appropriately.”

Netflix also has plans to expand into other global regions, with Chief Financial Officer David Wells revealing, “China continues to be its own entity in terms of its challenges and the characteristics of the market. We hope to be able to launch a service there next year.”

“We described it as a modest investment when we launch, and nothing has changed in terms of our use of the word ‘modest’ with reference to investment levels,” Hastings added, regarding China.

The announcement coincides with the release of Netflix’s accounts for the second quarter of 2015, which saw a rise in after-hours trading, pushing share prices up by over 10%. The company made a profit of $838m from its US streaming service alone, plus $307m from its international streaming platforms, and an additional $130m from its DVD rental service. The number of global Netflix subscriptions hit 65 million this quarter, bringing in a net revenue of $7.7 billion.

Thank you The Guardian for providing us with this information.