Netflix has said its quarterly revenues from video streaming have passed $1 billion, as it announced it is putting up its subscription price for new customers.
They will pay $1 or $2 a month more depending on there they live.
The company stressed that money will be used to buy additional movies and TV shows and improve service for its now 48 million subscribers worldwide.
Chief Executive Reed Hastings said Netflix had improved its selection of TV shows and movies and added original series like the critically acclaimed thriller ‘House of Cards’ starring Kevin Spacey, and ‘Orange is the New Black’.
Hastings said that with added revenue from higher prices the company would “be able to license much more content and deliver it in very high quality video”.
Subscription fees will rise in each of the 41 countries where Netflix operates, Hastings revealed, adding that existing customers will keep their current price for one to two years.
Investors welcomed the news. FBN Securities analyst Shebly Seyrafi said Netflix has “room to raise prices” because “they’re still seeing a lot of demand” for the service.
The company faces competition from online video players like Amazon.com and Hulu, as well as on-demand content from cable operators.