Netflix has implemented price hikes on its subscription plans. The streaming giant, which added a whopping 9 million subscribers in the third quarter, has raised its monthly charges for basic plans by $2 to $11.99 in the U.S. Premium subscriptions have increased by $3, now priced at $22.99. Similarly, UK subscribers will see a £1 rise for basic plans, making it £7.99, and a £2 increase for premium subscriptions, totaling £17.99.
Netflix’s efforts to combat password sharing seem to have bolstered investor confidence, evident in the company’s 12% share price surge. The company’s Q3 earnings of $3.75 per share exceeded Wall Street estimates of $3.52, reflecting its resilience in a competitive market.
A significant portion of Netflix’s recent success stems from older shows licensed from rival studios, a tactic employed after these studios launched their streaming platforms. Notably, legal drama Suits, licensed by NBCUniversal, garnered a billion viewing hours worldwide after being added to Netflix this summer.
The ongoing strikes in Hollywood have posed challenges for the industry, impacting Netflix’s content investment, which decreased by $1 billion. Despite this, the company’s diverse content sources, including substantial contributions from outside the U.S., have mitigated some effects of the strikes. Notably, over 70% of Netflix subscribers reside outside the United States, with 4 million new subscribers hailing from Europe, the Middle East, and Africa.
While these challenges persist, Netflix remains optimistic, projecting content spending to reach about $13 billion in 2023. If the actors’ strike concludes soon, the company anticipates a content budget increase to approximately $17 billion in 2024, demonstrating its commitment to providing diverse and engaging content to its ever-expanding global audience.