Netflix Stock Rises 3% Amidst New Price Hike

netflixNetflix stock jumped 3% amidst a newly announced price hike.

Netflix comments on the price hike:
“To continue adding more TV shows and movies including many Netflix original titles, we are modestly raising the price for some new members in the U.S., Canada and Latin America. As a thank you to existing Netflix members — who aren’t already benefiting from a previous price guarantee — we will maintain their current price for a year.”

Netflix is in the midst of an aggressive worldwide expansion including China, and Japan and will likely use the extra cash to rapidly increase subscriber numbers in Asia. Fortunately for existing subscribers the price hike will take effect in a year. But for new subscribers the pricing will take effect immediately.

 

 

 

 

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