Netflix CEO Tells Subscribers to Brace for Higher-Priced Plans In The Future

Netflix CEO Reed Hastings told investors on Wednesday that the company was preparing to carefully push consumers toward higher-priced plans in the US in the coming years.
Share prices slipped early in the day and then soared more than 10% on after-hours trading as the stronger-than-expected second-quarterresults were announced. The company’s stock also split seven-for-one on Wednesday.
The company made some $838m from its streaming business in the US alone this month, with $307m coming from its international web video service. Its DVD rental service still brings in $130m.
Netflix topped 65m subscriptions worldwide this quarter, with 42m in the US alone. Nevertheless, the cost of the third-party content currently on the service remains 4.6 times its net revenue at $7.7bn.



wochit_business