Netflix Boosts Prices And Gains Subscribers: Netflix (NFLX.O) raised the prices of some streaming plans in the US, UK, and France on Wednesday, going against expectations that they would add more users. The company’s share price increased by 13% after this smart pricing move.
LSEG says that in Q3, Netflix had a shocking increase of about 9 million customers worldwide, which was more than the 6 million customers that Wall Street had predicted. Netflix showed strength in the face of labor unrest in Hollywood by having a lot of its content produced overseas, which is a big reason why it has so many new subscribers. This has shown a similar level of progress in the current quarter.
“One Piece,” a live-action adaptation of the popular Japanese comic series, got great reviews worldwide. This shows that Netflix is committed to investing in stories that have appeal across national borders. In addition to trying to get more people to watch, the streaming giant emphasized long-running TV shows like “Band of Brothers” and the Comcast (CMCSA.O)-licensed legal thriller “Suits.”
Ted Sarandos, co-CEO of Netflix, was pleased with the quarterly results and said that the platform’s wide selection of shows was one of its best features. He thought about how he handled a long and unexpected break in production while also handling material well during the uncertain COVID era.
Hollywood writers just recently signed a deal, but players are still on strike. Ted Sarandos said again that Netflix was determined to break the stalemate. Netflix had its third quarter’s biggest quarterly growth since Q2 of 2020. This was due to a rise in streaming orders during the early stages of the global epidemic.
In the US, the price of Netflix’s elite plan with no ads went up by $3 to $22.99 monthly. Prices for the top level went up by 2 pounds in the UK, to 17.99, and by 2 euros in France, to 19.99.
Also Read: Netflix Contemplates Price Surge Following Victory in Password-Sharing Crackdown
During trading after business hours, investors responded strongly, driving Netflix shares to $390.80, a big jump from the closing price of $346.19.
Paolo Pescatore, an analyst at PP Foresight, says that Netflix’s success in Q3 may have been helped by its recent crackdown on sharing passwords and the growth opportunities that came with its move into advertising. He told us, “It is firing on all cylinders, with recent efforts all heading in the right direction.”
Even though the prices changed, Netflix said at the end of September that it had 247 million users worldwide. There was a big rise in subscribers in Europe, the Middle East, and Africa, adding over 4 million new customers. This proves that over 70% of Netflix’s subscribers are outside the United States.
For 12 weeks after its release on Netflix, “Suits” was the most-watched movie, original TV show, and acquired TV show in the US during the third quarter. Netflix hinted that it could get licensing deals for more big-budget movies because it thought the competition would change. The quarterly letter to shareholders talked about the $8.54 billion in sales, which was about what experts expected, and the $3.73 per share earnings, which were higher than the $3.49 per share that Wall Street had predicted.
It’s interesting to note that Netflix’s expected Q4 income of $8.69 billion was a little less than what experts thought it would be ($8.77 billion). Netflix dropped its earlier prediction that it would spend $17 billion on content in 2023 to $13 billion because of the ongoing writer and actor strikes. The company still hopes that the studios will quickly settle the labor problems.
Nielsen data shows that even though the industry was changing, Netflix still had the most viewers, with an 8% share of TV screen time, second only to YouTube.
Our Reader’s Queries
Is Netflix raising prices after best subscriber gain in years?
Starting now, Netflix is raising the price of its most expensive plan in the United States to $22.99 per month, a $3 increase. Additionally, the cost of the basic plan is going up by $2 to $11.99 per month. However, the ad-supported plan will remain at its current price of $6.99 per month.
Why is Netflix increasing their prices?
Netflix has recently announced a price hike for its most expensive streaming service in the U.S. The increase amounts to $2, bringing the monthly cost to $23, which is a 10% rise. Additionally, the lowest-priced, ad-free streaming plan will also see a $2 increase, bringing the monthly cost to $12. This move is aimed at generating more revenue for the company.
Is Netflix growing subscribers?
As of the third quarter of 2023, Netflix boasts a whopping 247.2 million paid subscribers worldwide. This impressive figure represents a growth of over eight million subscribers from the previous quarter.
How many subscribers did Netflix gain in 2023?
In its most recent shareholder letter, it was reported that the company welcomed 8.8 million new subscribers in Q3 of 2023, in addition to the 5.9 million gained in the previous quarter. This brings the total number of subscribers worldwide to an impressive 247.2 million.