Online rental service Netflix is raising its monthly subscription cost by $2. In mid-June, the monthly fee will increase to $21.99 from $19.95.

Online rental service Netflix is raising its monthly subscription cost by $2. In mid-June, the monthly fee will increase to $21.99 from $19.95.

Revenue generated by the price raise will go toward expanding Netflix's new-release offerings, according to CEO Reed Hastings. He says subscribers have been requesting more current titles.

In the first quarter, Los Gatos, Calif.-based Netflix reported a loss of $5.8 million on revenue of $100.4 million, compared to a loss of $2.4 million in first-quarter 2003.

Projected revenues for 2004 are $485 million-$535 million, according to Hastings. He predicts that Netflix's subscriber base will reach 2.7 million by the end of 2004. The company currently has 1.93 million subscribers.

Netflix is expected to launch in the United Kingdom by the fourth quarter and in Canada in 2005.

The company's stock was down $6.84 at $30.18 in early afternoon trading on Friday (April 16).

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