Netflix subscriptions are rising.
The streaming giant announced during its third-quarter earnings report that its premium advertising-free plan will jump to $22.99 a month — a $3 increase — beginning Wednesday, CNN reported.
The company’s one-stream basic plan will increase to $11.99, a $2 price hike. Its other plans, including its $6.99-per-month, ad-supported platform, will remain the same, according to the cable news outlet.
The price increases will affect customers in the United States, the United Kingdom and France, The Wall Street Journal reported.
Netflix said its efforts to limit password sharing delivered stronger customer growth than expected in the third quarter, and it announced plans to increase some prices in the U.S., U.K. and France https://t.co/8z4W4LxX8Z
— The Wall Street Journal (@WSJ) October 18, 2023
The last time Netflix raised prices was in March 2022, according to USA Today.
Netflix said that its efforts to limit password sharing led to higher customer growth than had been expected in the third quarter of 2023, The Wall Street Journal reported.
Netflix added 8.8 million subscribers during the third quarter; during the same period last year, the company added 2.4 million new accounts, according to the newspaper.
“As we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix said while announcing third-quarter earnings results. “Our starting price is extremely competitive with other streamers and at $6.99 per month in the US, for example, it’s much less than the average price of a single movie ticket.
“We’re optimistic about our prospects and the future of entertainment,” the company added. “Over the last year, there’s been an intense debate about streaming’s impact on the creative community. Like all new technology including TV, home video, and DVD, the internet has driven a lot of change in our industry, while also opening up significant new opportunities. Increased convenience, choice and control for consumers has expanded audiences and created additional value for older titles.”
Netflix ended the third quarter with 247.15 million paid subscribers, an increase of 10.8% from 2022, The Wall Street Journal reported.
Netflix added that streaming has ensured that film and television “remain relevant for the next generation.”
The company’s stock jumped 12% in after-hours trading after its announcement, CNN reported.
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