Netflix is a pretty great deal at just $7.99 per month, but that starting price won’t last forever. Speaking to investors this week, CEO Reed Hastings revealed plans to raise prices and push customers towards more expensive subscriptions, The Guardian reports.
Prices won’t go up this quarter. They probably won’t go up this year, but over the next few years the cost of Netflix is likely to increase. “We want to take it very slow,” Hastings said. “Over the next decade I think we’ll be able to add more content and have more value and then price that appropriately.”
He added that the goal is to convince people to upgrade on their own from the first tier to more expensive packages. For now that means the option to watch multiple videos at once on a single account along with higher definition streaming. It’s possible Netflix could come up with other reasons to upgrade, though Hastings wouldn’t go into specifics.
The streaming giant boasted solid growth in its most recent quarter with a total of 65 million customers. Its digital business earned $838 million in the U.S. and $307 million internationally. DVD rentals added another $130 million in revenue.
Even so, the company is still spending more to license TV shows and movies than it makes in subscriptions. At a certain point Netflix may have no choice but to raise its prices.