![]() ![]() As a result, we’re revenue positive in every region when accounting for additional spinoff accounts and extra members, churn and changes to our plan mix,” the letter reads. “The cancel reaction continues to be low, exceeding our expectations, and borrower households converting into full paying memberships are demonstrating healthy retention. ![]() The streamer says it has now “taken action” on paid sharing in every region the company operates in and continues to see a low cancel reaction. However, the price hikes also come as the streamer reported about $1 billion in “lower-than-planned cash content spend,” over the past quarter due to the SAG-AFTRA and WGA strikes.Īmid the strikes, in the third quarter, the company reported revenue of $8.5 billion, an increase of 8 percent year-over-year, and the addition of 5.9 million new subscribers last quarter thanks to the rollout of paid sharing. The changes come as Netflix continues to ramp up its monetization efforts on the platform, which have included its new advertising tier - which saw its membership up close to 70 percent from last quarter and 30 percent of signups in the countries with the ad tier choosing that tier - and its password-sharing crackdown. Speaking during the third-quarter earnings interview, Netflix co-CEO Greg Peters would not comment on when price increases on the other plans may happen, but said the timing will fit in to the company’s “philosophy” of “occasionally” raising prices to continue delivering better content. “While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same - a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix said in its third-quarter shareholder letter. and France, pricing for the ad and standard plans remain unchanged, while the basic plan is jumping to 7.99 pounds and 10.99 euros, respectively, and standard is increasing to 17.99 pounds and 19.99 euros, respectively. That isn’t limited to direct rivals: Xbox Game Pass, PlayStation Plus, Spotify, YouTube Premium and Apple Music all jacked up their subscription costs in the last year.The '3 Body Problem' Scene That's Become a Political Lightning Rod Disney+, Hulu and Max have all issued increases in the past 12 months. Netflix is hardly alone in raising prices. In addition to its price hikes, ad-supported plan and password-sharing crackdowns, the streaming service is even taking the peculiar step of moving into retail. Netflix has shifted its strategy as it adjusts from its peak-pandemic highs while facing increased competition. In addition, Netflix’s advertising-supported plan seems to be off to the hot start it expected as it accounted for 30 percent of all new sign-ups in countries where it’s available. Paid net subscriber additions were 8.76 million for Q3, the biggest increase of the last year. Paid memberships are up to 247.15 million, a significant 10 percent annual increase. The company’s move to limit password sharing appears to have paid off. “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.” “While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same - a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix wrote in its earnings report. ![]()
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