Netflix Inc. increased prices by one euro ($1.10) a month for new subscribers in most of its European markets to raise funds to add more TV shows and movies.
A high-definition plan that lets users stream video on two devices now costs 9.99 euros a month, up from 8.99 euros, in countries including France, Germany and the Netherlands, Joris Evers, a Netflix spokesman, said in an e-mail Tuesday. Prices for existing members will be unchanged for a year.
Netflix, the world’s largest subscription streaming service, is relying on markets outside of the U.S. to help drive growth as Chief Executive Officer Reed Hastings looks for ways to fund the company’s expanding budget for content. Netflix added 2.37 million subscribers in international markets in the second quarter, more than double the number of domestic additions.
“There’s definitely more room for them to grow on the continent,”said James Cordwell, an analyst at Atlantic Equities LLP. “I don’t think the price increase will have a material impact on their growth trajectory given it’s still a relatively modest sum versus most other pay-TV alternatives.”
Netflix raised prices worldwide last year, its first increase since 2011. Prices in the Nordics and the U.K were changed earlier this year, Evers said.