Netflix Raises Subscription Prices After Gaining Millions of New Customers

Netflix has announced price increases for some of its subscription plans following a substantial boost in its subscriber base. In the third quarter, the video streaming giant welcomed an impressive 8.8 million new customers, elevating its total subscriber count to a staggering 247.2 million. This remarkable growth is attributed to the platform’s diverse and high-quality content offerings, as well as its measures to curb password sharing.

Effective immediately, the costliest Netflix plan in the U.S. will see a monthly price hike to $22.99, an increase of $3. Additionally, the basic plan will incur a $2 raise, setting its monthly cost at $11.99. Meanwhile, the ad-supported plan, priced at $6.99, will remain unchanged. Similar price adjustments are being implemented for basic and premium plans in France and the U.K.

In a letter to shareholders, Netflix justified these changes by stating, “As we deliver more value to our members, we occasionally ask them to pay a bit more.”

Netflix has demonstrated robust financial performance, with third-quarter earnings reaching $1.68 billion, a 20% increase from the previous year. The company forecasts a revenue of $8.69 billion in the current quarter, highlighting its resilience in a competitive streaming landscape. Netflix’s stock saw a 12% surge in after-hours trading following this announcement.

Netflix’s continued growth has been impressive, with over 16 million new subscribers added in the first nine months of the year, surpassing the 8.9 million additions in all of 2022. Although it falls short of the exceptional 36 million subscribers gained in 2020 during the pandemic, Netflix’s popularity and subscriber base remain strong.