Netflix just released its first quarter 2014 earnings, beating Wall Street estimates with an EPS of $0.86 per share, versus estimates of $0.83, and falling right in line on revenue with $1.27 billion for the quarter. There’s bad news in this release, however, at least for new customers looking to start up a Netflix subscription.
The company said it will raise prices from $7.99 per month by $1 or $2 depending on the market, and for new customers, during this quarter. “These changes will enable us to acquire more content and deliver an even better streaming experience,” Netflix said. Prices for existing customers will remain the same for a “generous time period.” Netflix may be safe boosting prices; it says it didn’t see any negative impact after boosting the price of its service in Ireland.
Meanwhile, Netflix now has 48 million customers. It added 4 million during the quarter, a nice pop from the 3.05 million it added during the first quarter of 2013. Growth will continue to come from international subscribers. “International revenues currently amount to 25% of our total streaming revenue and we anticipate our international segment to eventually surpass our U.S. market, similar to other Internet firms,” Netflix said.
Shares of Netflix are up about 20 points in after hours trading after closing the day up 2.75 points.