If you’re presently weighing up the benefits of subscribing to the World’s leading internet TV service, now might be the time to give that Netflix trial a go.
In a letter to shareholders concerning their latest quarterly earnings, Netflix CEO Reed Hastings said the company are set to increase monthly charges by a dollar, or two, depending on which territory you are in.
"Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only."
The last part of that statement is significant in that it guarantees existing members won’t be subject to any price hikes in the short-term future.
Netflix reported that a recent one euro (€6.99 to €7.99) increase, levied to Irish subscribers, saw only a “limited impact” on revenues, largely thanks to the fact Netflix are ‘grandfathering’ all existing members at the old price of €6.99 for a two year period.
"Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only."
The last part of that statement is significant in that it guarantees existing members won’t be subject to any price hikes in the short-term future.
Netflix reported that a recent one euro (€6.99 to €7.99) increase, levied to Irish subscribers, saw only a “limited impact” on revenues, largely thanks to the fact Netflix are ‘grandfathering’ all existing members at the old price of €6.99 for a two year period.
Come on Frank, it's only a dollar!
Hastings said US subscribers could expect their existing price-plans to remain in place, “for a generous time period,” and we would expect the same treatment here. "I don’t think it’s a huge difference," he said, concerning the price change during Netflix's afternoon earnings call.
In other news from the Quarterly Earnings statement, Netflix reported yet more healthy growth across the board. Global membership has now reached 48.35 million, for streaming customers, and could top 50 million by the time the next quarterly earnings are revealed.
Netflix added 2.25m new domestic customers, whilst sign-ups in other territories numbered 1.75 million in the same period. That international figure is up 72% over the same period in 2013 and Netflix says it eventually expects the markets outside the US to surpass their home-grown incomes. International revenues currently amount for 25% of their total streaming revenue.
We still think Netflix would represent really good value to new subscribers at £6.99 a month but would £7.99 be starting to push it too far? In fact, over to you, where would you draw the limit for your Netflix subscription?
Use the comments below, if you please.
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