Netflix shares soar to 2011 levels; 'large families' plan unveiled

Published: Tuesday, April 23 2013 6:47 p.m. MDT

After the Monday announcement that first-quarter earnings exceeded expectations, Netflix shares surged past $200 for the first time since 2011.

Paul Sakuma, Associated Press

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As the New York Times reported on B1 of Tuesday’s newspaper, Netflix stock “soared on Monday — passing $200 a share in after-hours trading for the first time since 2011, after it reported robust first-quarter earnings and hailed the success of its first original series, ‘House of Cards.’”

On Tuesday Barron’s reporter Tiernan Ray wrote, “Shares of Netflix (NFLX) are up $43.84, or almost 25 percent. … The bulls today are especially enthusiastic about what they deem as the success in the (last) quarter of the company’s original programming, such as ‘House of Cards,’ given the better-than-expected 2 million subscribers added in the domestic streaming video business.”

In the shareholder disclosure Netflix released after-hours Monday, the company also announced a new plan for “members with large families” that can bump into the limit of two online streams at any given time.

Netflix “said it plans to introduce a family streaming plan in the U.S. that would let up to four people stream at the same time,” Dara Kerr reported for tech website CNET. “However, this also means that Netflix may be looking for a way to minimize several people sharing one account. The plan would cost $11.99 per month and let subscribers stream as many as four devices simultaneously. Netflix's current plan, which costs $8 a month, allows two streams at the same time.”

Jamshid Ghazi Askar is a graduate of BYU's J. Reuben Clark Law School and member of the Utah State Bar. Contact him at jaskar@desnews.com or 801-236-6051.

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