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


A customer who threw a burrito bowl in a Chipotle worker's face in September has been sentenced to ...

Chris Isidore, CNN

Woman who threw bowl of food at Chipotle worker sentenced to work 2 months in fast food job

A woman who threw a bowl of hot food in the face of a Chipotle worker has been sentenced to a month in jail — and two months working a fast food job.

12 hours ago

8-year-old, Andrew Miller, is in hospice and wants 2,000 cards for his birthday and Christmas.

Nadeen Abusada

8-year-old in hospice wants 2,000 cards for his birthday and Christmas

If you are looking to give some love this holiday season, there is a young boy who would appreciate getting a Christmas or birthday card from you.

16 hours ago

In this photo illustration, the welcome screen for the OpenAI "ChatGPT" app is displayed on a lapto...

Sergio Padilla, CNN

Wikipedia releases its top 25 most-viewed pages of 2023

Wikipedia’s top 25 most viewed pages in 2023, released Tuesday, reflect the world’s interest in innovation in artificial intelligence, people who died this year and the growing power of Indian users to influence trends on the website.

2 days ago

A skier takes a huge jump at Kirkwood Mountain Resort, which is already open for the '23-'24 ski se...

Terry Ward, CNN

Less snow is falling worldwide, but these ski resorts are good bets for snowy slopes this season

From Europe and Japan to Alaska and Utah, here are some of the highest likelihoods for snowy slopes for a ski vacation this winter. See which Utah resort made the list!

2 days ago

FILE: Hollywood actors have reached a tentative agreement with the major film and television studio...

Ramishah Maruf and Elizabeth Wagmeister, CNN

Hollywood actors union ratifies new contract with studios

Members of SAG-AFTRA, the Hollywood actors union, have ratified a new contract with the Alliance of Motion Picture and Television Producers, which represents major studios and streamers, the union said on Tuesday.

2 days ago

President Joe Biden, here on June 1, sets off on a fundraising sprint Tuesday as he looks to tap in...

Kevin Liptak, David Wright and Samantha Waldenberg, CNN

Biden tells donors he’s ‘not sure I’d be running’ in 2024 if Trump wasn’t in the race

resident Joe Biden told Democratic donors Tuesday he wasn’t confident he’d be seeking another term if his predecessor Donald Trump wasn’t running for the White House.

2 days ago

Sponsored Articles

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.

Users display warnings about the use of artificial intelligence (AI), access to malicious software ...

Les Olson

How to Stay Safe from Cybersecurity Threats

Read our tips for reading for how to respond to rising cybersecurity threats in 2023 and beyond to keep yourself and your company safe.

Design mockup half in white and half in color of luxury house interior with open plan living room a...

Lighting Design

Lighting Design 101: Learn the Basics

These lighting design basics will help you when designing your home, so you can meet both practical and aesthetic needs.

an antler with large horns int he wilderness...

Three Bear Lodge

Yellowstone in the Fall: A Wildlife Spectacle Worth Witnessing

While most people travel to this park in the summer, late fall in Yellowstone provides a wealth of highlights to make a memorable experience.

a diverse group of students raising their hands in a classroom...

Little Orchard Preschool

6 Benefits of Preschool for Kids

Some of the benefits of preschool for kids include developing independence, curiosity, and learning more about the world.

Netflix hikes prices again