Netflix says it is hiking its prices for new subscribers.

The company says its profits have increased in the first quarter of 2014. Netflix's profits climbed from $3 million to $53 million in the space of a year.

The online movie and programming service says the improvement is down to a surge in subscribers - with 48 million customers worldwide now using Netflix.

However, it's warned newcomers will now face higher subscription rates.

Our Business Editor Ian Guider explains, ""The company did say it's raising prices for new subscribers so it can invest in shows like House of Cards and Orange is the New Black. They're going to add around one dollar or two dollar per month for new customers. If you're on an existing deal, they call it grandfathering, you'll keep that deal for two years, but then you'll be paying more."

Netflix Chief Executive is Reed Hastings, "If we want to continue to expand to do more great original content, more series, more movies, we have to eventually increase prices a little bit. We're not doing much, we're doing a dollar or two - depending on the country."