The VOD giant, Netflix, have revealed their financial results for the first quarter of 2014.
The company announced an increase of 4 million subscribers with a combined total of 48 million customers. The company also states that their revenue for the quarter exceeded $1 billion – a milestone that was not met during any individual financial quarter in 2013.
In a letter to shareholders, Netflix later revealed their intention to introduce a subscription fee increase for new customers:
“Our current view is to do a $1 or $2 increase, depending on the country, later this quarter for new members only. Existing members would stay at current pricing. (e.g. $7.99 in the U.S. for a generous time period)… These changes will enable us to acquire more content and deliver an even better streaming experience.”
In January 2014, Netflix tested a similar pricing model in the Republic of Ireland where they increased customer subscription fees from €6.99 to €7.99. However, it is not yet known when the company intends to increase their subscription fees for new customers world-wide.