Netflix hikes British subscription rate to £6.99 after good financial year

E-commerce

by Jimmy Nicholls| 09 May 2014

Existing members rates frozen for two years.

Netflix has announced a £1 increase to its monthly subscription rates for British customers, following reports of £31m profits in the first quarter of this year.

Rate increases were effected in Ireland during January, raising monthly prices from €6.99 to €7.99, a move that was received without much complaint from the Irish.

In an email to its members, Netflix, said: "In order to continue adding more films and TV programmes, we are increasing our price from £5.99 to £6.99 for new members.

"As a thank you for being a member of Netflix already, we guarantee that your plan and price will not change for two years."

The justification for the hike will seem dubious to many, the company's net income having increased from £1.8m in the first quarter of last year to £31m this year, while profits are projected to rise £41m in the next quarter.

The video streaming service now boasts 48 million members worldwide, with nearly 13 million outside of America.

It recently caused controversy after opposing Comcast's acquisition of Time Warner Cable, as well as the FCC's plans to abandon net neutrality, both of which could affect its bottom line.

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