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Netflix subscribers to face price hike

CEO Reed Hastings considering how to manoeuvre customers into higher priced plans

Netflix subscribers could face a more expensive service in the future, as the company released plans to “carefully push” customers, initially in the US, towards higher price plans.

The news came during an announcement to investors from CEO Reed Hastings that demonstrated stronger-than-expected results for the second quarter, which forced shares to increase more than ten per cent.

Hastings revealed that the company made $838 million from its streaming business in the US allied to $307 million from its global web video service, with its DVD rental service accounting for $130 million. Netflix’s worldwide subscriptions now sit at some 65 million, with 42 million of those coming from the US market alone.

According to a report in The Guardian, Hastings explained that while subscription prices won’t change this quarter, there will be an increase over the next decade. “We want to take it very slow,” Hastings said, as reported by The Guardian. “Over the next decade I think we’ll be able to add more content and have more value and then price that appropriately.”