Netflix said its ad-supported and Standard plans will remain the same at $7 and $15.49, respectively. Before Wednesday’s news, the company last raised prices in early 2022.
“While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix wrote in its earnings report. “Our starting price is extremely competitive with other streamers and at $6.99 per month in the US, for example, it’s much less than the average price of a single movie ticket.”
The company’s move to limit password sharing appears to have paid off. Paid memberships are up to 247.15 million, a significant 10 percent annual increase. Paid net subscriber additions were 8.76 million for Q3, the biggest increase of the last year. In addition, Netflix’s advertising-supported plan seems to be off to the hot start it expected as it accounted for 30 percent of all new sign-ups in countries where it’s available.
Netflix has shifted its strategy as it adjusts from its peak-pandemic highs while facing increased competition. In addition to its price hikes, ad-supported plan and password-sharing crackdowns, the streaming service is even taking the peculiar step of moving into retail.
Netflix is hardly alone in raising prices. Disney+, Hulu and Max have all issued increases in the past 12 months. That isn’t limited to direct rivals: Xbox Game Pass, PlayStation Plus, Spotify, YouTube Premium and Apple Music all jacked up their subscription costs in the last year.
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