Monday 24 October 2016

Netflix to hike prices to help fund almost €4bn of programmes

Published 09/10/2015 | 07:06

Kevin Spacey as Frank Underwood in ‘House of Cards’
Kevin Spacey as Frank Underwood in ‘House of Cards’

Netflix is to raise the price of its most popular streaming subscription by $1 a month to $9.99 for new customers in the US, Canada and parts of Latin America.

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The firm said that it will maintain prices for existing customers for another year.

With more than 65 million subscribers, Netflix is counting on customer gains and higher prices to sustain revenue growth and finance the cost of its film and TV offerings.

The company has $4.3bn (€3.8bn) in programming costs, including ‘House of Cards’, over the next year, and almost $5bn more for the following three years.

Netflix has said it plans to mostly complete its global expansion by the end of next year.

It has added Australia, New Zealand and Japan in 2015 and is now in over 50 countries.

It is aggressively moving into new markets and has said it aims to be available in 200 countries by the end of 2016.

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