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Netflix Announces Price Increase

Netflix has announced another increase in the cost of its services.

Netflix Announces Price Increase

In the income statement for the third quarter of this year, the company said that for users living in the United States, the monthly cost of its tariff plan, which does not provide for viewing advertising materials, will increase by $3, and will amount to $22.99. The payment for the basic package of one-stream services in this country will increase to $11.99 per month. The cost of all other tariff plans of the company, including entry-tier price with advertising for $6.99 for the specified period, will remain at the same level.

The streaming platform also announced an increase in fees for using individual service packages in the UK and France.

The company released information according to which the average number of paid subscribers in the third quarter increased by 9% year-on-year. 8.8 million users joined the streaming service during the specified period. In total, there were 247 million paid subscribers of the streaming platform worldwide in the third quarter.

Netflix claims that the increase in the number of users of the service is partly the result of the company’s efforts to combat the spread of passwords. The company has launched a paid exchange program in each region of its presence. The streaming service reported that as a result of the implementation of measures to combat the spread of passwords, the number of users who canceled their membership in the corporate community turned out to be less than the expected scale of stopping interaction with Netflix.

The company assumes that customers who, before the launch of the campaign to prevent the exchange of login data to accounts registered on the brand’s platform, borrowed relevant information to watch movies, TV series, and shows from the owners of personal online pages on the website of the media product provider, have now become paid subscribers.

The streaming service also reported an increase in the number of users of advertising-tier tariff plans in the period from July to the end of September. In this case, the growth rate was 70% compared to the second quarter of this year.

The company’s revenue in the period from July to the end of September was fixed at $8.54 billion. Earnings per share amounted to $3.73.

In a letter to shareholders, Netflix said the last six months have been a difficult period. In this case, the negative circumstances were the strikes of the Screenwriters Guild and the Actors Guild, announced in the summer.

Ted Sarandos, co-CEO of the company, announced the brand’s commitment to ending the actors’ protest after an agreement was reached with the writers in September. He said that it is necessary to conclude a deal as soon as possible, taking into account the interests of all parties. Ted Sarandos separately noted that the strikes are causing damage to the industry, corporate communities, and the economy as a whole.

Netflix is also currently paying attention to investing in new business areas for it, including gaming and sports content. The goal of these efforts is to gain new subscribers. The company’s chief executive Greg Peters said that games are a huge opportunity for entertainment, noting that in a strategic context, they can be turned into a strong category of content using movies and TV series.

As we have reported earlier, Netflix Launches New Tool.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.