The basic plan went up $1 to $9.99 and the premium plan increased $2 to $19.99 In the United States, the subscription price for the standard plan rose $1.50 to $15.49. The streaming media company said Friday it is raising the prices on its plans in the United States and Canada. Which, at the end of the day, is why customers are prepared to pay each month.Your Netflix bill is about to go up again. ![]() While detractors might see that as a risk to their business, those additional profits (or at least the money that’s not being used for share buybacks), can be used to create more content. We’re seeing the content wars continue to play out, with Netflix doubling down on their plans to increase profits. Those might not sound like massive numbers, but when dealing with millions of subscribers, that extra few dollars a month will potentially add millions to Netflix’s bottom line. The ad-supported free plan and the standard plans will both stay at their current prices. While in France, the premium plan will be bumped by €2 a month. In the UK the basic plan price will go from £6.99 to £7.99 while the premium plan will go up to £17.99 from the current price of £15.99. In the US the price for the basic plan will go from $9.99 to $11.99, while the premium plan will be increasing by $3, bringing it up to $22.99 a month. The company has obviously been encouraged by the impact the password sharing crackdown has had on the bottom line, and is looking to push the envelope further to see whether further increasing the cost on consumers will slow subscriber numbers. Netflix has announced at the same time that they’re going to be increasing prices for their non-ad supported tiers in the US, France and the UK. Which, let’s be honest, is like Exxon Mobil saying “We like oil.” Netflix to hike prices againĪlongside all of this good news for investors, was some bad news for customers. "We’re optimistic about our prospects and the future of entertainment," said executives in a statement to investors. Netflix is projecting its revenue to reach $8.7 billion next quarter, slightly below analysts' consensus of $8.78 billion. While the move garnered its share of negative publicity, in hindsight it appears to have been a prudent move. ![]() It’s clear that the password sharing armageddon that had many online forum and social media users announce that they’d be ‘deleting their account’ was overblown. There was also a significant increase in paid subscriptions, with a net addition of 8.8 million, compared to the anticipated 6.1 million. Of course it will remain to be seen how this will impact their library in the next 12 to 18 months, as planned shows will potentially take longer to be released. These numbers were helped by the writers strike, at least in the short term, with the company able to save $1 billion in content costs as development on impacted shows came to a halt. ![]() The revenue was reported at $8.54 billion, matching the analysts' forecast of the same figure. Netflix announced profits of $3.73 per share in Q3, surpassing the Wall Street analysts' average prediction of $3.49. Netflix adds 8.8 million subscribers and grows revenue So those same investors (if they’d been brave enough to hold on) will be very pleased with these latest developments. Investors who had bought in at the peak were staring down a 73% loss. By May, the stock price had plummeted to hover around $180. After reaching those heady pandemic heights, it came crashing back down to earth in 2022 as the world went back to normal and had us all spending far less time in front of the TV or tablet.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |