Netflix to increase prices for new members as Q1 results show profit rise

netflix to increase prices for new members as q1 results show profit rise loading feature

Netflix said Monday it’s planning to increase its subscription fee for new users by between one and two dollars a month (depending on country), with the extra revenue targeted at buying more content for its streaming video service. The rise is expected to take effect in the next couple of months, though existing customers will continue to pay $7.99 monthly.

The news came as the company announced Q1 financial results that saw an increase in both profit and subscribers.

Profit for the quarter came in at $53 million, an increase of $3 million on a year ago, while total revenue hit $1.27 billion, up from $1.05 billion 12 months earlier.

Netflix said in its earnings report for the quarter ending March 31 it’d picked up 2.25 million new users in the US, bringing the total figure to 35.7 million. Internationally, its user base rose by 1.8 million, taking it to 12.7 million.

The subscription fee hike announced by Netflix comes three years after a similar rise in fees turned into a damaging episode for the company. Its decision to split its streaming and DVD-by-mail services – resulting in a significant price increase – caused many angry users to cancel their subscriptions, sending the company’s stock plummeting.

In an effort to end the exodus, Netflix CEO Reed Hastings apologized to users, admitting he’d “messed up” with the way the company had communicated its decision to alter its services and pricing. Understandably fearful of a similar backlash, the company has been much more careful in planning this latest price hike, with a trial run in Ireland apparently having had little impact on users’ enjoyment of the service.

Rival firm Amazon also bumped up its prices recently, increasing the cost of its Prime membership from $79 a year to $99, equal to $8.25 a month. Besides streamed content, Prime members are also able to enjoy benefits such as free two-day shipping for items bought on its site and access to the company’s Kindle lending library.

As for Netflix’s price hike, if you’re interested in the service and are yet to sign up, now’s the time, with the increase still a few months away.

Emerging Tech

Awesome Tech You Can’t Buy Yet: Grow veggies indoors and shower more efficiently

Check out our roundup of the best new crowdfunding projects and product announcements that hit the web this week. You may not be able to buy this stuff yet, but it sure is fun to gawk!
Home Theater

Apple will reportedly launch its new video-streaming service at March 25 event

The rumors about what Apple will announce at a March 25 event continue to swirl. A new report suggests that it will debut its much-anticipated video-streaming service, which will compete with Netflix and Amazon's Prime Video.
Home Theater

Netflix vs. Hulu vs. Amazon Prime: Battle of the on-demand streaming giants

Trying to figure out which subscription streaming service to use while sticking to a frugal entertainment budget? Check out our updated comparison of the big three: Netflix, Amazon Instant Video, and Hulu.
Home Theater

Cutting the cord? Let us help you find the best service for live TV streaming

There's a long list of live TV streaming services available to help you cut the cord and replace your traditional TV subscription. Each is different in important ways, and this guide will help you find the best one for you.

Take a gander at the best deals on 4K TVs for February 2019

There's no doubt that a good 4K smart TV is the best way to take your home entertainment setup to the next level to enjoy all your favorite shows, movies, and games in glorious Ultra HD. We've got the best 4K TV deals right here.

Don't know what to do with all your old DVDs? Here's how to convert them to MP4

Given today's rapid technological advancements, physical discs are quickly becoming a thing of the past. Check out our guide on how to convert a DVD to MP4, so you can ditch discs for digital files.
Movies & TV

Stay inside this winter with the best shows on Hulu, including 'Legion'

It's often overwhelming to navigate Hulu's robust library of TV shows. To help, we put together a list of the best shows on Hulu, whether you're into frenetic cartoons, intelligent dramas, or anything in between.
Movies & TV

The best movies you’ll find on Hulu right now (February 2019)

From dramas to blockbusters, Hulu offers some great films to its subscribers. Check out the best movies on Hulu, whether you're into charming adventure tales or gruesome horror stories.
Home Theater

They were robbed! From Crowe to Pacino, 10 times Oscar voters got it wrong

With the 91st Oscars rapidly approaching, now is a fine time to look back at several Oscar-worthy performances that were completely ignored by the Academy, as well as others that were nominated and astoundingly denied the little naked…
Movies & TV

The best new movie trailers: Yesterday, Tolkien, Triple Frontier, and more

Everyone loves a good trailer, but keeping up with what's new isn't easy. That's why we round up the best ones for you. This week, it's trailers for Yesterday, Tolkien, Aladdin, Frozen 2, and Triple Frontier.
Movies & TV

'Prime'-time TV: Here are the best shows on Amazon Prime right now

There's more to Amazon Prime than free two-day shipping, including access to a number of phenomenal shows at no extra cost. To make the sifting easier, here are our favorite shows currently streaming on Amazon Prime.
Movies & TV

Best new shows and movies to stream: Deadpool 2, The Umbrella Academy, and more

Need something to watch this weekend? Check out our list of the best new shows and movies to stream right now. On the list this week: Deadpool 2, The Umbrella Academy, Lorena, and more.
Movies & TV

The best movies on Amazon Prime right now (February 2019)

Prime Video provides subscribers with access to a host of fantastic films, but sorting through the catalog can be an undertaking. Luckily, we've done the work for you. Here are the best movies on Amazon Prime Video right now.
Home Theater

Apple Music encourages subscribers to give friends a free 1-month pass

It's no secret that Apple has its sights set squarely on Spotify's enviable subscriber count, but how will Apple Music grow? By using existing customers to recruit new members by letting them send friends a one-month free pass.