By Jonathan Davies

Netflix boss Reed Hastings has told investors that he plans to introduce higher prices in the US over the next decade.

Shares slipped after the announcement, but jumped by 10% in after-hours trading following better-than-expected results of the second quarter.

Netflix reported sales of $838 million from its streaming service in the US, with international sales coming in at $307m. Its DVD rental service added a further $130m.

Subscriptions rose to 65 million worldwide in the second quarter, 42 million of which are in the US.

Despite a huge subscription base and strong sales, the cost of third-party content is more than 4x its revenue at $7.7bn.

“We want to take it very slow,” Reed Hastings said. “Over the next decade I think we’ll be able to add more content and have more value and then price that appropriately.”

Netlix currently offers a standard definition package at $7.99, but Mr Hastings told investors that he wants more customers to take out HD and ultra HD packages that allow multiple devices to be used.