Netflix to raise membership cost

The streaming company will increase costs to new members later in the quarter by $1 to $2 depending on the country, CEO Reed Hastings and CFO David Wells wrote in their first-quarter earnings letter to shareholders.

Existing members could expect rates to stay the same for “a generous time period” before an inevitable rise, given the cost of content and streaming delivery.

The increase will fund content acquisition and improve the company’s streaming capabilities.

The current cost is $7.99 in the US for streaming and the same amount for one-at-a-time DVD delivery.

Netflix posted earnings of 86 cents a share on sales of $1.27bn in revenue for the first three months of 2014, beating analysts’ expectations that forecast 83 cents a share on $1.27bn.

First quarter global subscribers has reached 48.4m following a 2.25m gain in the US that raises the number to 35.7m. There was a 1.75m international gain, elevating the count to 12.7m.

Hastings and Wells said ongoing international expansion meant that side of the business would continue to report losses for a while and added that international would eventually overtake the US business.