Netflix announced it is increasing the prices for some customers while also reporting an increase in its subscriber base. On Wednesday, Netflix reported 8.8 million additional customers for the third quarter, which brought the total subscriber count to 247.2 million. The quality and variety of the company’s programming, along with the password-sharing crackdown, is one of the biggest reasons for the broadened reach.
So Netflix is increasing the monthly price of its highest plan to $22.99 – a $3 increase. And Netflix added $2 to the monthly cost of the basic plan, increasing to $11.99 per month. The $6.99 ad-supported plan is going to stay the same. The last time Netflix increased prices in the U.S. was January 2022.
For the UK and France, the pricing for Ads/Basic/Standard/Premium is UK £4.99/£7.99/£10.99/£17.99 and 5.99€/10.99€/ 13.49€/19.99€, respectively (like the US, the Ads and Standard plans in UK and France are unchanged).
“It’s been less than a year since launch. It takes time to build a new business from scratch, which is why we have said ad revenue would not be material to our business in 2023. We remain very optimistic about our long-run opportunity in this very big market ($180B ex-China and Russia),” said Netflix in a statement. “Ad dollars follow eyeballs, and more and more TV viewing is shifting from linear to streaming — we’re a leader in streaming engagement, and the engagement of our ad tier members is strong. While we have much work to do to build out this business, we’re making good progress and laying the foundation for what we believe should be a multi-billion dollar revenue stream over time.”
For the third quarter, Netflix reported revenue of $8.54 billion – which is up from $7.9 billion during the year-ago quarter. And net profit increased 20% to $1.68 billion.
