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Netflix raises subscription prices again

Netflix added nearly 9 million subscribers in the third quarter, attributing the growth to its ongoing crackdown on password sharing.
Netflix raises subscription prices again
Posted at 11:49 AM, Oct 19, 2023
and last updated 2023-10-19 13:50:56-04

Netflix reports a surge in subscribers as the company announces it's raising its prices again.

The streaming giant announced that the premium plan will increase from $19.99 to $22.99, while the basic plan, which is the lowest-tier plan without ads that is only available for those who signed up before July of this year, will increase by $2 to $11.99.

And if you don't like change, don't worry; the popular $15 ad-free plan and the $6.99 plan with ads are both staying the same, at least for now.

On Wednesday’s earnings call, Netflix reported third-quarter results that beat expectations.

The company said it added almost 9 million subscribers during the quarter, the company’s best performance since the height of the COVID-19 pandemic. 

With the majority of those new sign-ups coming from households overseas, that brings the estimated subscriber total to over 247 million households that pay for Netflix in some capacity each month across the globe. 

The company credited its increase in subscribers to its ongoing efforts to curb password sharing. Earlier this year, Netflix introduced a plan to crack down on password sharing and introduced a new ad tier. On Wednesday, it reported that these actions have proven successful, resulting in an estimated $8.5 billion in revenue.

But the success has not come without challenges; Netflix has reduced spending during what co-CEO Ted Sarandos called a "challenging" six months due to the Hollywood actors and writers strikes.

On Wednesday's call, Sarandos said, "We want nothing more than to resolve this and get everyone back to work."

Meanwhile, when it comes to increased prices, Netflix says it's competitive with other streamers and points out that its lowest option, $6.99, is still cheaper than a movie ticket.

SEE MORE: Netflix plans to open Netflix House retail stores in 2025


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