Netflix Contemplates Price Surge: Since Netflix recently cracked down on people who share passwords, the number of users increased by about 6 million in the third quarter. Sources in the industry think that this action is a sign that membership fees will be going up soon since the leader in the streaming industry is about to share its financial results this Wednesday.
Among the best streaming services, Netflix is the only one that makes money. Competitors, like Walt Disney, raised the prices of ad-free services, but Netflix stood out by not letting families share passwords. This smart move is meant to reach more than 100 million people who use the service without signing up for it.
Bernstein analysts say that Netflix is now a lot like a utility company, which makes it harder for a growing company to keep growing.
There are reports in the business world that Netflix might think about raising prices now that actors are on strike in Hollywood. Because it has users worldwide and a wide range of material, Netflix has benefited from the recent end of the Writers Guild of America (WGA) strike. A new deal with big studios was made official as part of the resolution.
Also Read: Netflix Ceases DVD Rental Operations: Signifying the Conclusion of the Red Envelope Epoch
In the next few months, Netflix is likely to raise the price of its ad-free services, even though the new ad system wasn’t well received at first. This strategy aims to get more users to switch to a different tier where carefully chosen ad placements bring in a lot more money per user. Notably, most of the new Netflix members who signed up after the password crackdown picked the plans without ads. The most basic plan with ads costs $6.99 a month, while the plans without ads start at $15.49.
Insider Intelligence analyst Ross Benes says that if Netflix uses these tactics, it should be able to quadruple the number of people who watch Netflix shows with ads in the next year. In order to compete with other companies in the same field, Netflix is likely to start showing more ads to its customers in the future.
Based on forecasts from Visible Alpha, the ad-supported tier should bring in about $188.1 million for the third quarter ending in September, with an expected 2.8 million new members. Wall Street thinks that Netflix will have its biggest quarterly growth in subscribers this year, based on data from LSEG.
The expected numbers for the third quarter show that sales will rise by 7.7% to $8.54 billion, which is the biggest gain in five quarters. These numbers are going up because of interesting shows, like the newest seasons of popular shows like Virgin River and Sex Education.
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Is Netflix raising prices again 2023?
In a bid to keep up with the competition, Max, owned by Warner Bros. Discovery, raised its prices by $1 a month in January 2023 – marking its first-ever price hike. This move comes as Hollywood studios demand more from streaming services for their TV shows and movies, with production costs on the rise.
Why did Netflix price go up?
As our library of TV shows, movies, and games expands and we introduce fresh product features, our plans and prices may shift. We may also modify our plans and pricing to adapt to local market fluctuations, such as changes in local taxes or inflation.
Netflix has recently announced that it will be raising the prices of its Basic and Premium subscription plans. The Basic plan will now cost $11.99 per month, which is an increase of $2 per month. Meanwhile, the Premium plan will now cost $22.99 per month, which is an increase of $3 per month. This news comes as part of the company’s third quarter earnings report.
Did Netflix raise prices and add subscribers despite strikes?
Netflix’s latest earnings report revealed a surge in its global subscriber base, which now stands at 247 million as of September. The company witnessed significant growth in Europe, the Middle East, and Africa, where it added almost 4 million new subscribers. Along with this, the report also announced price hikes, which could impact the streaming giant’s revenue in the coming months.