Netflix is raising prices for some of its customers after seeing strong growth in its subscriber base.
The video streaming service said Wednesday that it brought in an additional 8.8 million customers in the third quarter, bringing its total number of subscribers to 247.2 million. Netflix took credit for the diversity and quality of its programming and the company’s Crack down on password sharing In order to expand its scope.
As of now, Netflix is raising the monthly price of its most expensive plan in the US to $22.99, an increase of $3, and adding $2 to the monthly cost of its Basic plan, which rises to $11.99. The company’s $6.99 ad-supported plan will remain the same.
Prices for basic and premium plans in France and the UK are also rising.
“While we provide greater value to our members, we sometimes ask them to pay a little more,” Netflix said in a letter to its shareholders. “Our starting price is very competitive with other streaming companies, at $6.99 per month in the US, for example, which is much lower than the average price of a single movie ticket.”
The Wall Street Journal mentioned Earlier this month, Netflix decided to raise subscription prices two months after the Hollywood actors’ strike ended. Actors are still on strike, but last month the Writers Guild of America ended its strike after reaching an agreement with services like Netflix.
The Los Gatos, Calif., company reported third-quarter earnings of $1.68 billion, up 20% from the same period last year. Netflix expects revenues of $8.69 billion in the current quarter, as the company finds its financial footing as newer streaming services struggle.
Netflix shares jumped 12% in trading after the US markets closed.
Netflix added more than 16 million subscribers during the first nine months of the year, surpassing the 8.9 million subscribers it added in all of 2022. But that’s just a fraction of the more than 36 million additional subscribers Netflix brought in in 2020 when the pandemic turned into a money-making period for the service at a time when people were looking for things to do while at home.
The Associated Press contributed to this report.
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