Netflix Inc. (NFLX), the DVD-rental and streaming service, may be close to raising prices by more than 50 percent for some subscribers, Engadget.com reported, citing a person at the company it didn’t identify.
The company plans to increase the minimum price for a combined DVD-by-mail and streaming service to $15.98 from $9.99, Engadget reported today.
Netflix, based in Los Gatos, California, needs to boost revenue to raise funds for expansion and the acquisition of new content, Tony Wible, an analyst with Janney Montgomery Scott LLC, said recently in an interview.
“We are seeing reports that a price hike could be coming as soon as tonight for their hybrid plans, which we estimate account for 80 percent of their subscribers,” Wible said today in an e-mail. He has a “sell” rating on the shares.
Steve Swasey, a Netflix spokesman, declined to comment.
Netflix fell $2.25 to $288.49 at 12:28 p.m. New York time in Nasdaq Stock Market trading. The shares were up 65 percent this year before today.
To contact the editor responsible for this story: Anthony Palazzo at email@example.com