Netflix poised to raise prices after strong 1Q

This July 20, 2010 file photo shows a Netflix customer turns on Netflix in Palo Alto, Calif. (AP Photo/Paul Sakuma)
This July 20, 2010 file photo shows a Netflix customer turns on Netflix in Palo Alto, Calif. (AP Photo/Paul Sakuma)

SAN FRANCISCO (AP) — Netflix is preparing to raise its Internet video subscription prices by as much as $2 per month this summer to help pay for more programming such as its popular political drama “House of Cards.”

The price increase will be imposed on new customers by July. The company says current U.S. subscribers will continue to pay $8 per month for a “generous time period.”

Netflix announced the price increase as part of its first-quarter earnings released Monday.

Investors evidently liked the move. The company’s stock surged 6 percent in extended trading after the results came out.

Netflix Inc. earned $53 million, or 86 cents per share, during the first three months of the year. That compared to $2.7 million, or 5 cents, last year.

Revenue rose 24 percent to $1.3 billion.

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