Tomahawk, WI 04/24/2014 (Basicsmedia) – The biggest online subscription video provider Netflix Inc., (NASDAQ:NFLX) has experienced a massive impact as a result of Amazon’s decision. Amazon.com, Inc. (NASDAQ:AMZN) has decided to sign an agreement with HBO.

Increase in Subscription Price

The users of Netflix Inc., (NASDAQ:NFLX) were surprised by the plans of the company to increase the price of the subscription. The monthly subscription price is to be raised by $1 or $2 before July for its new customers. This was announced during the earnings conference for 1Q2014.

This increase in the subscription price seems no to affect the users, because a raise of $1 or $2 for quality content that is being delivered will not make a huge impact.

The reason behind the price hike

Netflix Inc., (NASDAQ:NFLX) reports that the increase in price is to bring in more quality content and to provide a top-notch streamlining experience.

The end-result of the price hike

Though the company has increased its subscription price, it does not seem to suffer any loss in revenue. As per analysis, the company is to experience a good increase in revenue. The company’s revenue is expected to increase by $600 million to $1.2 billion.

The biggest setback

Netflix seems to experience a greater impact as a result of the agreement signed between Amazon and HBO. It is reported that HBO is now set to streamline quality content at no extra cost. This is the first time HBO has signed an exclusive deal with online video provider.

The first quarter stats

1Q2014 earnings report shows Netflix to be well on its way. $1.1 billion revenue was reported by Netflix for 1Q2014. This is a good hike from that of the same period last year. The company has witnessed 36% hike in revenue.

The company enjoyed a net income of $53 million and the earnings per share are 4 cents. The company has successfully managed to add 48 million subscribers.

With all these stats it is well reported that Netflix Inc., (NASDAQ:NFLX) is a sure “Hold”.

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