Netflix hikes prices again

Oct 18, 2023, 4:02 PM

Netflix reported a 9% year-over-year increase in average paid memberships in its earnings, adding 8...

Netflix reported a 9% year-over-year increase in average paid memberships in its earnings, adding 8.8 million subscribers last quarter. Photo credit: Chris Delmas/AFP/Getty Images

(CNN) — Netflix has raised its prices again.

The streaming giant said in its third-quarter earnings report that its premium ad-free plan in the United States will increase by $3 per month, to $22.99, starting Wednesday. Its one-stream basic plan will rise to $11.99 in the United States. All other plans, including its entry-level, $6.99-a-month ad-supported tier, will remain at the same monthly cost.

Netflix also announced price increases for some subscription tiers in the United Kingdom and France.

Netflix reported increase in average memberships

The company reported a 9% year-over-year increase in average paid memberships, adding 8.8 million subscribers last quarter. That’s compared to 2.4 million in the third quarter last year. Overall, Netflix reported 247 million paid global subscribers in the third quarter.

Netflix attributed some of its strong subscriber growth to its continued password-sharing crackdown. Netflix said it has officially rolled out its “paid sharing” program in every region where the company operates, and fewer customers than they expected cancelled their memberships as a result. Rather, many customers who previously borrowed passwords from others are converting into full paying subscribers, according to Netflix.

Netflix also said that adoption of its advertising tier plans continues to grow, with membership up almost 70% compared to the previous quarter.

The company brought in $8.54 billion in revenue last quarter, boosted by higher-than-expected growth of its membership base. Earnings per share for the quarter came in at $3.73.

Netflix’s stock jumped by 12% in after-hours trading.

In a letter to shareholders, Netflix called the last six months “challenging” given this summer’s writers’ guild and actors’ guild strikes. An agreement with the writers guild was reached last month, and Netflix said it is “committed to resolving the remaining issues” with the actors on strike. Last week, negotiations between SAG-AFTRA, which represents Hollywood’s actors, and the studios, were suspended.

Ted Sarandos, Netflix’s co-CEO, said talks stalled after the guild’s latest proposal was “a bridge too far.”

Raising prices along with its competition

Netflix last raised prices in January 2022, but its biggest competitors have all raised prices since then. Disney+ in August hiked prices by $3 a month – for the second time this year. The company also raised Hulu prices. And Max, owned by CNN parent company Warner Bros. Discovery, raised prices in January 2023 by $1 a month – its first-ever price hike.

Hollywood studios continue to demand more from streaming services for their TV shows and movies, as production costs rise. Meanwhile, consumer demand for streaming services has slowed dramatically since the pandemic, cutting into streamers’ revenue growth. Raising prices is one way to solve that issue.

Making streaming shows will get only more expensive after the end of the writers strike, which boosted pay and benefits for Hollywood writers. And the actors, who are still on strike, are demanding more, too.

Netflix is one of the few profitable streaming services, and investors are demanding Netflix continue to grow its earnings. That’s why the company has been pushing its lower-priced ad tier, in which it can hide some of the cost by keeping prices low for consumers but charge more to advertisers over time.

KSL 5 TV Live


FILE - Celina Washburn protests outside the Arizona Capitol to voice her dissent for an abortion ru...

Arit John and Cheri Mossburg, CNN

Lawmakers vote against hearing Arizona bill repealing abortion ban on House floor

The Republican-controlled Arizona House of Representatives once again failed to advance a repeal of the state’s 160-year-old abortion ban Wednesday

13 hours ago

Melatonin use can be especially dangerous in children and should only be used after consulting a pe...

Sandee LaMotte

Melatonin industry asked to voluntarily tighten standards after dramatic rise in childhood ER visits

A March 2024 report from the CDC discovered some 11,000 children had been seen in emergency rooms between 2019 and 2022 after ingesting melatonin while unsupervised.

17 hours ago

People wade through a street flooded by heavy rain in Peshawar, Pakistan on Monday, April 15.

Sophia Saifi, Asim Khan, Masoud Popalzai, Irene Nasser and Kathleen Magramo, CNN

More than 100 killed across Pakistan and Afghanistan as flash floods and heavy rains sweep the region

Unseasonal rainfall has lashed Pakistan and Afghanistan over the past few days, killing more than 100 people across the neighboring countries

19 hours ago

Cars are stuck on a flooded road after a rainstorm hit Dubai, United Arab Emirates on Wednesday. (R...

Nadeen Ebrahim, Mary Gilbert and Brandon Miller

Chaos in Dubai as UAE records heaviest rainfall in 75 years

Chaos ensued in the United Arab Emirates after the country witnessed the heaviest rainfall in 75 years.

20 hours ago

A United Airlines jetliner heads in for a landing at Denver International Airport after a winter st...

Chris Isidore, CNN

Boeing’s problems just cost United Airlines $200 million

United Airlines was pushed into the red by Boeing and its ongoing quality issues, the airline said Tuesday.

2 days ago

In this handout photo released by Roscosmos Space Agency Press Service, a view of the International...

Jackie Wattles, CNN

A piece of space station garbage hit a house in Florida, NASA confirms

A piece of garbage jettisoned from the International Space Station unexpectedly survived a fiery reentry from orbit last month and pierced the roof of a home in Florida, according to NASA.

2 days ago

Sponsored Articles

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why Printer Security Should Be Top of Mind for Your Business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

Netflix hikes prices again