Netflix confirmed this week that it intends to increase the monthly subscription price for new customers this year, which caused its stock to increase 6.5 percent in after-hours trading, according to Reuters.
The company said it added 2.25 million customers to its U.S. streaming business for the quarter that ended in March.
Its net income for the previous quarter reached $3 million, Netflix confirmed on April 20. This represents an increase from a year earlier.
Earnings-per-share came in at 86 cents, besting the average forecast of 83 cents, according to Reuters.
In a quarterly letter to shareholders, Netflix said it will impose "a one or two dollar increase, depending on the country, later this quarter for new members only."
Existing customers would keep their current price "for a generous time period," the letter reads. Affected countries were not named by the company in the letter.
At the end of last month, Netflix said it had 35.7 million streaming subscribers in the U.S. Its customer base reached 12.7 million in international markets, an increase of 1.8 million during the last quarter, according to Reuters.
"It was an impressive quarter," FBN Securities analyst Shebly Seyrafi said, according to Reuters. "They came through on the bottom line and the net subscriber ads were solid."
Netflix has "room to raise prices" because "they're still seeing a lot of demand" for the service, Seyrafi added.
In July 2011, Netflix had to deal with consumer backlash and stock plunge after announcing a price increase.
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