Netflix has reaped the benefits, adding a staggering 9 million subscribers in the third quarter, marking the most significant surge in three years. Riding this wave, the streaming giant has implemented subscription price hikes, a maneuver that has delighted investors and bolstered its share price by 12%
For U.S. basic subscribers, the monthly bill will increase by $2, totaling $11.99, while premium subscriptions will rise by $3, reaching $22.99. In the UK, basic subscribers will pay an additional £1, totaling £7.99, and premium subscriptions will increase by £2, reaching £17.99, as reported by the Financial Times.
Netflix’s Q3 earnings of $3.75 per share exceeded Wall Street predictions of $3.52. The platform, boasting 247 million subscribers by the end of the quarter, showcased an 11% growth from the previous year.
Amidst slowed subscriber growth last year, Netflix initiated stringent measures to curb password sharing. Simultaneously, they introduced ad-supported plans and innovative ad formats, adapting swiftly to market demands. A significant boost stemmed from older shows licensed from rival studios, especially after they withdrew their content to launch individual streaming services.
However, recent Hollywood strikes have impacted the industry significantly. Netflix, cushioned by its diverse global content, has been relatively shielded from these issues. Remarkably, over 70% of its subscribers reside outside the U.S., with 4 million new subscribers hailing from Europe, the Middle East, and Africa.
Despite a $1 billion reduction in content investment due to the strikes, Netflix’s future plans remain ambitious. If the strikes are resolved promptly, the company anticipates a content spending surge to $17 billion in 2024, underlining Netflix’s resilience and adaptability amidst an ever-evolving streaming landscape.