Streaming giant Netflix is flexing its pricing muscle and Wall Street is swooning.
Netflix said on Thursday that it was raising its standard plan to $13.99 a month from $12.99 a month and its premium plan to $17.99 a month from $15 a month.
The price of its basic plan remains at $7.99 a month.
Word of the price change sent Netflix shares soaring by about 5% in afternoon trading to $509 a share.
Last week, Netflix announced slower than expected subscriber growth, but Wall Street largely shrugged off the news as the company’s earnings and revenues increases.
Analysts also said the company was poised to turn cash-flow positive. It has been funding the billions it spends on programming by borrowing money.
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Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.