CEO Reid Hastings has announced that Netflix will be slowly increasing the price for subscriptions $1-$2 from the known $7.99 per month. Over the last 12 months Netflix has expanded dramatically world wide and acquired over 12 million customers. With sales up 24% why would Netflix need to increase their price? Well, Netflix is spending over $2 billion in video content and stock in the company has been on the steady decline over the recent weeks. Back in 2011, Netflix planned to raise prices 60% which immediate consequences, as Netflix lost one million subscribers and its stock plunged almost 80% in a few months. It's kinda risky to announce the price increase but they have decided to grand-father in current user for up to 2 years. So far the media had not had the same frenzy this time as it did in 2011. It' will be interesting to see how this announcement and future raises affect the number of subscribers and stock prices (http://finance.yahoo.com/q?s=NFLX)
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