Netflix: Big Earnings, New Price Hike - NBC Bay Area
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Netflix: Big Earnings, New Price Hike

New subscribers' streaming price to rise



    Netflix: Big Earnings, New Price Hike
    Justin Sullivan
    A sign is posted in front of the Netflix headquarters on January 22, 2014 in Los Gatos, California. (Photo by Justin Sullivan/Getty Images)

    Netflix is still packing 'em in.

    Investors, loving the streaming company's latest earning report, are jumping into the stock, pushing the price up by more than $20 a share in extended trading Monday night. The stock surge follows another strong quarter for Netflix, which reported a larger than expected profit.

    Subscribers are also streaming in. The Los Gatos, Calif.-based company says it grew by 2.25 million new subscribers, many lured in by another strong season of the Netflix original program "House of Cards."

    But if you're thinking of joining, know this: Netflix also reports plans to raise the price of its streaming services by "one or two dollars" a month. It currently costs new streamers about eight dollars a month to sign on.

    The price increase will be imposed on new customers by July.

    Growth is pretty much everywhere, in the U.S. and overseas. Netflix took a big risk with original programming like "House of Cards." It appears to be paying off.

    Netflix Inc. earned $53 million, or 86 cents per share, during the first three months of the year. That compared to $2.7 million, or 5 cents, last year.


    Scott Budman is on Twitter: @scottbudman. The Associated Press contributed to this report.

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