The benefits of the password crackdown will continue over the next several quarters because Netflix has been implementing the plan in stages. The company said subscriber additions would be similar to the just-ended quarter, plus or minus a few million. All Rights Reserved.This quarter, Netflix predicts revenue of $8.69 billion and earnings of $2.15 a share, both slightly below Wall Street projections. More price offerings could allow "entertainment fans from around the world that have different needs to be able to access the great story-telling that our creative partners are doing at a price-point that works for them," Peters said.Ĭopyright 2023 Cable News Network. On the company's earnings call, Peters said the company plans to eventually offer an even wider range of price points for Netflix subscriptions to grow its subscriber base. 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. Netflix is one of the few profitable streaming services, and investors are demanding Netflix continue to grow its earnings. And the actors, who are still on strike, are demanding more, too. Making streaming shows will get only more expensive after the end of the writers strike, which boosted pay and benefits for Hollywood writers. Raising prices is one way to solve that issue. Meanwhile, consumer demand for streaming services has slowed dramatically since the pandemic, cutting into streamers' revenue growth. Hollywood studios continue to demand more from streaming services for their TV shows and movies, as production costs rise. Discovery, raised prices in January 2023 by $1 a month - its first-ever price hike. And Max, owned by CNN parent company Warner Bros. Disney+ in August hiked prices by $3 a month - for the second time this year. Netflix last raised prices in January 2022, but its biggest competitors have all raised prices since then. "From a strategic perspective, we believe we can build games into a strong content category, leveraging our current films and series." Raising prices along with its competition "Games is a huge entertainment opportunity," Peters said. On the earnings call, co-CEOs Sarandos and Greg Peters also stressed Netflix's investments in newer business areas, like gaming and sports content, to draw new subscribers. "We need to get a deal done that respects all sides as soon as we possibly can." "The industry, our communities and the economy are all hurting," Sarandos said Wednesday. Rather, many customers who previously borrowed passwords from others are converting into full paying subscribers, according to Netflix. 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. Netflix attributed some of its strong subscriber growth to its continued password-sharing crackdown. Overall, Netflix reported 247 million paid global subscribers in the third quarter. That's compared to 2.4 million in the third quarter last year. The company reported a 9% year-over-year increase in average paid memberships, adding 8.8 million subscribers last quarter. Netflix also announced price increases for some subscription tiers in the United Kingdom and France. All other plans, including its entry-level, $6.99-a-month ad-supported tier, will remain at the same monthly cost. Its one-stream basic plan will rise to $11.99 in the United States. 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. CHICAGO - Netflix has raised its prices again.
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