Published , by Ozzie Mejia
Published , by Ozzie Mejia
Netflix reported in with its Q3 2023 earnings report on Wednesday and the news might be good for the company, but it may not be for those with a Premium subscription plan. The streaming giant's latest earnings report revealed plans to increased the price for the Premium subscription, as well as the legacy Basic plan.
"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," reads the Netflix Q3 2023 letter to shareholders. "Starting today, we're adjusting prices in the US, UK and France. In the US, our ads ($6.99) and our Standard plans ($15.49) will stay the same, while Basic will now be $11.99 and Premium $22.99. For the UK and France, our pricing for Ads/Basic/Standard/Premium are UK £4.99/£7.99/£10.99/£17.99 and 5.99€/10.99€/ 13.49€/19.99€, respectively (like the US, our Ads and Standard plans in UK and France are unchanged). 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 Netflix Premium plan comes with unlimited ad-free movies, shows, and mobile games on up to four supported devices at a time with downloads supported on up to six devices. It's the only plan that allows users to watch shows in Ultra HD. It also features the option to share with two household members for an additional $7.99 per month for each, a result of Netflix's password-sharing crackdown plan. Speaking of which, Netflix has lauded its efforts on that front, noting a low cancelation reaction that exceeded its expectations. The Premium tier was previously priced at $19.99 USD per month, making this a $3 (15%) increase.
The Basic plan was discontinued back in July 2023, but it remains an option for those who were subscribers to it at the time that it was scrapped. It was previously priced at $9.99, making this new $11.99 price tag a 20 percent leap.
Investors responded positively to this and other news from the Netflix Q3 2023 earnings report. The stock price leaped by over 8 percent at the time of the earnings report's release and continues to rise in after-hours trading.
Netflix suggests that it will continue building its ad-based membership to increase its revenue on that front. That's partially why lower tiers will stay the same price for now. We'll continue to watch everything coming out of Netflix, which includes anything from the Netflix (NFLX) Q3 2023 earnings call. Keep it on Shacknews for the latest updates.