Netflix plans to raise the cost of its monthly subscriptions by up to $2 in some countries, including the US and Canada, the company revealed this week.
The modest price increase won’t affect current users, however; Netflix says existing subscribers will enjoy current rates ($8 in Canada) for a “generous” period of time.
The move isn’t dramatic and most users aren’t apt to complain about an extra dollar or two a month, but analysts affirm it will “dramatically increase revenue and profit estimates” for Netflix. The company right now has close to 50 million subscribers worldwide—adding $2 to the monthly cost of its service could add up to $1.2 billion in annual revenue. That’s much-needed money as Netflix could spend up to $5 billion annually on content by 2016.
Netflix plans to expand its business to France and Germany later this year. Currently it operates in 41 countries, but still generates most revenue from North America.