Shares of Netflix (NFLX) Pop on Price Hike Announcement

According to a just released report from Bloomberg, it has been revealed that Netflix, Inc. (NFLX) will raise the price of its streaming subscription by $1/month to $9.99 for new customers in the U.S., Canada and portions of Latin America following a similar move in Europe this year.

Bloomberg also cites the online video service company as saying existing customers will be given a 12-month grace period before this price change will affect them. The increase affects the plan that lets two simultaneous HD (or regular) streams at a time. Prices for the so-called one-screen and four-screen plans aren’t affected.

Shares of Netflix rose 3% and on heavy volume immediately following news of the price hike. The name, currently valued at $46.83 billion, is up 65.85% year-over-year.

Netflix has more than doubled this year, printing an increase of roughly 122% and is the top performer for 2015 in the S&P’s 500 Index.

Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!

Be the first to comment

Leave a Reply

Your email address will not be published.


*

This site uses Akismet to reduce spam. Learn how your comment data is processed.