© 2024 WYPR
WYPR 88.1 FM Baltimore WYPF 88.1 FM Frederick WYPO 106.9 FM Ocean City
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Netflix Says It Will Raise New Customer Subscription Rates

Kevin Spacey and <em>House of Cards</em> co-star Robin Wright at a Netflix special screening of the second season in Los Angeles in February. The original production is seen as a key factor in boosting subscriptions for the video streaming service.
Eric Charbonneau
/
AP
Kevin Spacey and House of Cards co-star Robin Wright at a Netflix special screening of the second season in Los Angeles in February. The original production is seen as a key factor in boosting subscriptions for the video streaming service.

Netflix, buoyed by its foray into original productions such as the political drama House of Cards, said Monday it has added 2.25 million new customers and plans to raise its new-subscriptions rate by $1 or $2 a month.

The video streaming service reported first quarter earnings of $53 million, or 86 cents a share. Its share price surged by 6 percent following the announcement of earnings that compared with $2.7 million in the same period a year ago.

Chief Executive Reed Hastings said Netflix had improved its selection of television shows and movies and, with higher revenue from the raising the price of new subscriptions, "we will be able to license much more content and deliver it in very high quality video," he said on a webcast, according to Reuters.

In a quarterly letter to shareholders, Netflix said it plans to impose "a one or two dollar increase, depending on the country, later this quarter for new members only."

In recent years, Netflix has ventured into producing original series to attract new subscriptions, with the acclaimed House of Cards, starring Kevin Spacey, and Orange is the New Blackamong them.

Copyright 2021 NPR. To see more, visit https://www.npr.org.

Scott Neuman is a reporter and editor, working mainly on breaking news for NPR's digital and radio platforms.