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NETFLIX TO RAISE PRICES

April 22, 2014 by · Leave a Comment 

The last time Netflix raised its prices, the consumer revolt that followed sent its shares plummeting. Now the company is planning to raise them again — but it appears to have developed a plan that will ward off a consumer backlash. According to reports, it intends to introduce a plan that it instituted in Ireland in January, one that will raise the subscription rate for new customers only but keep the old rate ($7.99 per month for the streaming service alone) at its current level for “a generous time period” for current ones. (In Ireland, it’s two years.) “Over the last couple years, we’ve been improving the content selection on Netflix,” Chief Executive Reed Hastings said in an interview posted on YouTube. “We have to eventually increase prices a little bit.” The company has successfully attracted new subscribers with original programming such as House of Cards and Orange Is the New Black, but those programs are extraordinarily expensive to produce, and analysts have maintained that Netflix will have to raise its rates in order to pay for them.