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Netflix reported its third quarter earnings and things are going great right now for the streaming giant. The company added nearly 9 million customers globally, which means revenue has increased.
And yet, it also means that Netflix is using this opportunity to raise the prices of some of its plans in the US, UK, and France to differentiate the ad-free plans from its entry-level ad-supported plans . For example, the most expensive plan will now cost $22.99 per month for new customers.
But let’s first rewind and take a look at the current state of Netflix. In May, Netflix began cracking down on password sharing in its home market and dozens of global markets. In other words, we are now seeing a clearer picture of the impact of password sharing as Q3 is the first full quarter under the new rules.
After the company streamlined its offering a few months ago by removing the basic tier in the US and UK, people now have to pay a lot of money to remove ads from Netflix.
While reports suggest that many customers are experiencing subscription fatigue and some are thinking about canceling streaming subscriptions, it seems like Netflix still has a lot of room for growth – especially with advertising revenue. .
The company now has 247.15 million customers. And this number reached 8.76 million customers in this quarter alone. Netflix hasn’t seen that kind of growth in subscribers since the second quarter of 2020, also known as the quarter of strict Covid lockdowns across the world.
When it comes to revenue, Netflix reported $8.5 billion in the quarter with earnings of $3.73 per share. Advertisements are increasingly contributing to profits as the number of subscribers on the advertising plan has increased by nearly 70% quarter-on-quarter. About a third of new customers start with an advertising plan.
This is good news for shareholders, which is why Netflix shares are currently up 13.75% in pre-market trading ($393.79 per share). But customers are not going to be happy because it means that the company is going to increase the prices of some of its plans once again in three major markets. Here are the full details.
In America:
- Standard with ads: $6.99 per month (no changes)
- Basic (no longer available): $11.99 per month (up from $9.99)
- Standard: $15.49 per month (no change)
- Premium (with 4K streaming): $22.99 per month (up from $19.99)
in Britain:
- Standard with ads: £4.99 per month (no change)
- Basic (no longer available): £7.99 per month (up from £6.99)
- Standard: £10.99 per month (no change)
- Premium (with 4K streaming): £17.99 per month (up from £15.99)
in France:
- Standard with ads: €5.99 per month (no change)
- Basic (still available in France): €10.99 per month (up from €8.99)
- Standard: €13.49 per month (no change)
- Premium (with 4K streaming): €19.99 per month (up from €17.99)
These new prices will be applicable to new subscriptions starting today. Existing customers will see their bill prices increase in the coming weeks.
