Netflix may raise prices after password sharing becomes successful


Netflix’s crackdown on password sharing likely added about 6 million subscribers in the third quarter, and the streaming giant is expected to stage a price hike when it reports earnings on Wednesday. .

The only profitable major streamer, Netflix has resisted joining rivals like Walt Disney. (DIS.N) This year it raised ad-free prices and instead banned out-of-home password sharing to tap the more than 100 million viewers who use its service without subscribing.

“Netflix now resembles a utility in many markets,” Bernstein analysts said. “The challenge of labeling utility is how a maturing company continues to look for growth.”

It may increase prices after it expires. Hollywood actors strikea media report said in early October.

Five months after a strike that threw Hollywood into turmoil, the Writers Guild of America (WGA) last week approved A new contract With major studios.

Netflix, however, has weathered the strike well thanks to its large international presence and strong content slate.

Reuters Graphics

Reuters Graphics

The example shows the Netflix logo.

A smartphone with the Netflix logo is placed on a keyboard in this photo taken on April 19, 2022. REUTERS/Dado Ruvic/File Photo Obtain licensing rights.

After a slow start for the ad plan launched last year, analysts said they expect Netflix to raise the prices of its ad-free options in the coming months to lure more subscribers to the second tier. , where ads help bring in more revenue per user.

So far, most viewers subscribing to Netflix since the password crackdown have opted for ad-free plans, analysts said. Its standard plan with ads costs $6.99 a month, while ad-free plans start at $15.49.

“Using these tactics, Netflix will likely double its ad-supported viewership next year,” said Insider Intelligence analyst Ross Baines. He expects Netflix to show users more ads over time, and compete with competitors.

According to Visible Alpha estimates, the ad tier is expected to generate about $188.1 million in revenue in the third quarter ending in September, with an addition of 2.8 million users.

Reuters Graphics

Reuters Graphics

Overall, Wall Street expects to post its strongest quarterly subscriber growth this year, according to LSEG data.

Third-quarter revenue likely rose 7.7% to $8.54 billion, the fastest growth in five quarters, thanks to strong programming that included “Sex Education” and “Virgin River” updates. Seasons included.


Faheem Rasool

Hey everyone! My name is Faheem Rasool belong to Jacobabad, Sindh, Pakistan. I’ve been working as a blogger for the last three years and I have experience in blogging.

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