Netflix set to increase price for new members

Netflix is to increase its pricing for new members as it looks to “acquire more content and deliver an even better streaming experience.”

The company confirmed the decision – which was hinted at at the end of last year – in its latest financial results for Q1 2014, following a “greatly improved” content selection in the US.

In the states the streaming plan is costed at $7.99 a month, in the UK it is £5.99.

In a statement on Monday, Netflix said: “Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only. Existing members would stay at current pricing for a generous time period.”

However, the Wall Street Journal has said that while a price increase should boost Netflix’s bottom line, “it could come at the expense of subscriber growth.”

In the UK, Netflix subscriber growth has increased from 10% to 14% in the last six months, according to Decipher, while the newly rebranded Amazon Prime Instant Video dropped from 8% to 6% over the same period.