New Netflix subscribers will have to pay an extra dollar or two for the online video site's streaming services, according to company officials. Current subscribers will have a "generous time period" where prices will remain $7.99 per month, a price that was initially rolled out in 2010.
"These changes will enable us to acquire more content and deliver an even better streaming experience," Netflix said in a shareholder quarterly letter. In addition, CEO Reed Hastings said increased prices is necessary to add more original programming, additional movies and TV series, though it seems unlikely many Netflix subscribers will resist the price hike.
The company added 4 million new customers during Q1, and surpassed $1 billion in quarterly revenue. Netflix now has 36 million subscribers in the U.S., with more than 48 million users worldwide.