Netflix is preparing to raise its prices for the first time in three years to help pay for more Internet video programming such as its popular political drama "House of Cards."

The increase, to take place sometime before July, will hike prices by $1 or $2 per month for new customers. The Los Gatos, Calif. company says current U.S. subscribers will continue to pay $8 per month for a "generous time period."

The move announced Monday as part of Netflix's first-quarter earnings report illustrates the financial pressures mounting on the company as its spends more money to license compelling content. The efforts are aimed at warding off competitive threats from Amazon and Hulu.

The company added another 2.25 million Internet video subscribers during the first quarter to end March with 35.7 million U.S. customers. That's up nearly 50 percent from 23.9 million U.S. subscribers in July 2012 while the company was still trying to sooth customers irked by the last price increase.

The company attracted another 1.75 million subscribers in Canada and overseas, leaving it with 12.7 million international customers.

Netflix CEO Reed Hastings said the company needs to charge higher prices so the Internet video service can afford to bid against its rivals for programming —and reach its long-term goal of 60 million to 90 million U.S. subscribers.

Netflix poised to raise prices after strong 1Q: Associated Press Business News - MSN Money