Netflix raises prices by a $1 for new subscribers

The changes mean anyone signing up for Netflix’s video subscription service beginning Friday will pay $9 per month for in the U.S. The old price of $8 per month will continue until May 2016 for Netflix’s existing 36 million U.S. subscribers.
By MICHAEL LIEDTKE, AP Technology Writer Published: May 9, 2014

Netflix’s stock rose $2.65 to $324.31 in early afternoon trading Friday. The shares have fallen by 13 percent so far this year.

Prices for Netflix’s rapidly shrinking DVD-by-mail service aren’t changing. Those rates range from $5 to $20 per month, depending on how many DVDs are being rented and whether a Blu-ray option is included. Netflix ended March with 6.7 million DVD subscribers, a nearly 50 percent drop from 2 1 / 2 years ago.

New Internet video customers can avoid the higher price if they are willing to settle for a little less clarity and flexibility. Netflix is also introducing a new $8 per month plan that will only show standard-definition video and limit viewership to just one screen.

Netflix normally offers high-definition video and allows subscribers to watch on up to two different screens. That means two people sharing the same subscription can simultaneously watch Netflix videos on different devices with high-speed Internet connections. The company already charges $12 per month for a subscription plan that allows video to be simultaneously streamed on four different screens.

Subscription prices also will be increasing by the equivalent of about $1 month in Netflix’s markets outside the U.S. The company ended March with nearly 13 million international customers in more than 40 countries.