Netflix profits up, price hike planned

21 April 2014
Last updated at 22:08

Netflix has reported profits of $53m (£32m) during the first quarter of 2014, and revealed plans for a subscription price increase.

The internet video streaming firm said it added 2.25 million new members during the period, bringing its total global membership to 48 million.

It also announced a potential “one or two dollar increase” in monthly rates for new members later this year.

Shares in the firm soared more than 6% in after hours trading.

Chief executive Reed Hastings said the success of Netflix’s original programming was behind its membership increase, in particular highlighting Kevin Spacey-led drama House of Cards.

He said that increasing subscription rates would help the firm “acquire more content and deliver an even better streaming experience.”

However, despite the firm’s strong results, he set himself a larger target.

“We are approaching 50 million global members, but that is far short of HBO’s 130 million,” he wrote in a letter to shareholders, pointing to the US cable television leader.

“We are eager to close the gap.”