Netflix Inc. has raised subscription prices for certain streaming plans in the U.S., U.K., and France, coinciding with a surge in new customer sign-ups.
In the U.S., the premium ad-free plan increased by $3 per month to $22.99. U.K. subscribers also saw an increase of 2 pounds, bringing the premium plan to 17.99 pounds. France experienced a similar adjustment, with the premium plan now priced at 19.99 euros, as reported by Reuters.
It’s essential to note that these price adjustments exclusively impacted select plans, while the entry-level, ad-supported tier remains at its current price of $6.99 per month.
Netflix’s decision to raise prices came in tandem with an increase in new customer sign-ups, defying expectations and propelling the company’s shares up by an impressive 13%.
This increase in subscribers was most prominent in Europe, the Middle East, and Africa, where Netflix added nearly four million new customers.
Notably, the majority of Netflix’s members now reside outside the U.S.
According to the streaming giant, one key contributing factor to this growth was Netflix’s continued efforts to curb password sharing.
“Management’s working hard to squeeze every last drop of cash possible from the available subscriber base,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.
“As that cup begins to run dry, it will be a lot more important to understand exactly how successful the next phase of growth can be,” said Sophie Lund-Yates.
The company revealed that its “paid sharing” program, aimed at cracking down on password-sharing practices, has been rolled out globally and didn’t lead to the anticipated membership cancellations.
Instead, many users who had previously shared passwords decided to become paying subscribers, the report noted.
Netflix last increased its prices in January 2022, but other big streaming companies like Walt Disney Co‘s Disney+ and HBO Max have also raised their prices since then.
For example, Disney+ raised its prices by $3 per month in August, and they did it twice this year.
Hulu, which is also part of Disney, increased its prices.
HBO Max, owned by Warner Bros. Discovery, raised its prices by $1 per month in January 2023, in its first price hike ever.
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Edited by Miriam Onyango and Newsdesk Manager
