Netflix profit doubles on US, foreign subscriber growth
Tuesday, 22 July 2014
Netflix Inc said its quarterly profit more than doubled, boosted by strong growth in US and international subscribers as a price increase for its most popular US video streaming plan did not deter new users. Netflix added 570,000 US customers in the second fiscal quarter ended June 30, passing 50 million worldwide subscribers for the first time. It added 1.12 million customers in international markets. The company's shares rose nearly 1 per cent at $456.21 in after-hours trading, after the company also said it expected average revenue per user to rise slowly as it wins over more subscribers at the new prices. The company in May increased the price of its most popular video streaming plan by $1 per month to $9 for new customers in the United States — the company's first price hike in its largest market in three years, according to Reuters.