Netflix raises subscription prices with focus on Europe and the US

Netflix is increasing prices for select customers in the US, UK, and France, following a robust quarter marked by substantial subscriber growth. The developmentreflects streaming major's growing confidence in the future during a challenging time for the media industry hit by the strike of screenwriters.

Netflix subscription rate hike: How much is it?

Netflix is increasing the price of its most expensive plan in the United States by $3 to $23. The basic Netflix plan's price has been hiked by $2 to $12.

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The streaming major is taking similar steps in the United Kingdom and France, Bloomberg reported.

Netflix subscription rate hike: By when it's coming into effect?

The increased subscription rates will come into effect starting Wednesday, October 17, 2023.

Why is Netflix hiking its subscription prices?

Netflix has strengthened its lead as the world's top paid streaming service.

It exceeded expectations by adding 8.76 million customers in the third quarter globally, raising its total subscriber base to 247.2 million.

The company attributes this success to a strong programming lineup and a crackdown on password sharing.

"We’ve shown that with discipline and a focus on the long term, you can build a strong, sustainable streaming business," the company said in a letter to shareholders, according to Bloomberg.

Consequently, Netflix is on track to gain more than 20 million customers in the current year, a substantial increase from the fewer than 9 million added in 2022, Bloomberg reported further.

Spotlight on Netflix's paid sharing, ad-supported versions

The introduction of paid sharingallowed customers to buy additional streaming access for friends or family

Notably, the largest share of Netflix's growth in the third quarter came from Europe, West Asia, and Africa, where the company added nearly 4 million customers.

The average revenue per customer has remained relatively stable over the past year, according to a company readout.

Also watch |Netflix’s revenue reality check

The company also introduced an advertising-supported version of its streaming service in 12 markets, with nearly 30 per cent of new customers opting for ads in the last quarter.

In contrast to many competitors who are struggling with their streaming ventures, Netflix has returned to growth, courtesy of its focus on password sharing crackdown and an ad-supported version.

Major media companies such as Walt Disney Co, Warner Bros Discovery Inc., and Paramount Global have implemented cost-cutting measures and layoffs.

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