Streaming TV and films service Netflix announced its latest financial results yesterday: the company’s revenues for the first quarter of 2014 were $1.27bn, as it posted a net profit of $53m. The company ended the quarter with 48.4m members around the world, with 46.1m of them paying for the service. “Our present international segment is on a path to achieve profitability this year,” claimed Netflix, noting that non-US markets currently generate 25% of its total streaming revenues, but that it eventually expects them to outweigh its home country. But Netflix is also raising its prices. “Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only,” the company explained in its letter to investors. “Existing members would stay at current pricing (e.g. $7.99 in
the U.S.) for a generous time period. These changes will enable us to acquire more content and deliver an even better streaming experience.” A strategy worth watching for streaming music companies, if and when they need to raise their prices, perhaps.
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Tools: Kaiber
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