Netflix increases US subscription price
By Caoimhe Toman
Date: Tuesday 15 Jan 2019
(Sharecast News) - Netflix shares rose on Tuesday as much as 6.2% after it announced it would be increasing its subscribing prices in the US.
The hike to $13 from $11 will be the first time since there has been a price hike since 2017, making investors optimistic for a revenue boost.
"We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members," Netflix said in an emailed statement.
The price hike will hit all 58m US subscribers, which means the company should get an extra $1.4bn of revenue for the year.
The extra cash will be used to finance its own films and TV shows, which Netflicx said would cost $3bn in 2019.
Netflix stock gained nearly 40% in 2018 and has already gained 30% in the first few weeks of 2019.
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