Netflix has recently upped its subscription prices in the US, UK, and France. This decision comes as the streaming giant aims to bolster its revenue in a competitive market, resulting in a 7 percent surge in Netflix’s shares, reaching $369.89.
Premium Ad-Free Plan Price Hike
In the US, the premium ad-free plan now costs $22.99 per month, marking a $3 increase. This plan provides users with the option to stream on four devices simultaneously.
The basic US plan, which allows streaming on just one device, has also seen a $3 monthly price increase, now priced at $11.99.
Netflix Welcomes 9 Million New Subscribers
Netflix’s move to adjust subscription prices coincided with the company’s announcement in its third-quarter earnings report.
The report revealed a substantial increase in its customer base, with 9 million new subscribers, totaling 90 lakh globally. This surge in subscribers helped push the company’s revenue to $8.542 billion.
Competition Spurs Revenue Growth
Netflix reported a fourth-quarter revenue of $8.69 billion. To stay competitive against formidable rivals like Walt Disney, Warner Bros. Discovery, and others, the company remains focused on growing its revenue.
Price Adjustments Extend to the UK and France
In the UK, the basic Netflix plan has seen a £1 increase, now priced at £7. In France, the basic subscription plan has risen by 2-10.99 euros.
In response to evolving viewer preferences, Netflix has also introduced a cost-effective tier with advertising.
Additionally, the company is cracking down on password sharing by urging users to make separate payments.
