LOS ANGELES: Netflix on Wednesday raised subscription prices for some of its streaming plans in the United States, Britain and France as it shattered new customer expectations and sent its shares soaring 10%.
The company added nearly 9 million new customers worldwide, surpassing the consensus forecast of 6 million from Wall Street analysts surveyed by LSEG.
Netflix attributed the gains to a crackdown on password sharing and a steady stream of new shows, such as the global hit “One Piece.”
The company increased the US price of the premium ad-free plan by $3 per month to $22.99. The basic single flow plan increased by $2 per month.
Investors welcomed the news, sending shares of Netflix up more than 10% to $382.99 in after-hours trading
The streaming video pioneer is looking for ways to grow revenue as the U.S. market nears saturation and faces competition from Walt Disney, Warner Bros Discovery and others.
PP Foresight analyst Paolo Pescatore said the company’s growth in the third quarter is a testament to the crackdown on passwords and the potential for future growth as the company moves into advertising.
“It’s firing on all cylinders and the recent efforts are all going in the right direction,” he said.
GLOBAL PRICE INCREASES
In Great Britain, Netflix increased the price of its basic subscription by 1 pound to 7.99 pounds. In France the base rose by 2 euros to 10.99 euros.
The price increases were announced in a third-quarter earnings report, which showed the company’s global subscriber base stood at 247 million at the end of September.
The company posted revenue of $8.542 billion, in line with analyst expectations. Earnings per share came in at $3.73, higher than Wall Street expectations of $3.49.
Netflix’s forecast of $8.69 billion in fourth-quarter revenue fell slightly short of the $8.77 billion forecast from analysts surveyed by LSEG.
Media companies like Netflix are grappling with labor tensions in Hollywood. While film and television actors have signed a new contract, the actors remain on strike.
The work stoppages halted Netflix productions such as “Stranger Things.” However, the company claims that it has weathered the strikes better than competitors because many of its productions take place outside the United States.
The strikes prompted Netflix to revise its forecasts for content spending. The company estimated it would invest about $13 billion in content by 2023, assuming the studios settle with high-profile actors “in the near future.”
That was less than the $17 billion it expected to spend.
Netflix said it continued to dominate viewership despite the strikes. Netflix programming accounted for 8% of television screen time, second only to YouTube, the company said, citing Nielsen data.
The company added nearly 9 million new customers worldwide, surpassing the consensus forecast of 6 million from Wall Street analysts surveyed by LSEG.
Netflix attributed the gains to a crackdown on password sharing and a steady stream of new shows, such as the global hit “One Piece.”
The company increased the US price of the premium ad-free plan by $3 per month to $22.99. The basic single flow plan increased by $2 per month.
Investors welcomed the news, sending shares of Netflix up more than 10% to $382.99 in after-hours trading
The streaming video pioneer is looking for ways to grow revenue as the U.S. market nears saturation and faces competition from Walt Disney, Warner Bros Discovery and others.
PP Foresight analyst Paolo Pescatore said the company’s growth in the third quarter is a testament to the crackdown on passwords and the potential for future growth as the company moves into advertising.
“It’s firing on all cylinders and the recent efforts are all going in the right direction,” he said.
GLOBAL PRICE INCREASES
In Great Britain, Netflix increased the price of its basic subscription by 1 pound to 7.99 pounds. In France the base rose by 2 euros to 10.99 euros.
The price increases were announced in a third-quarter earnings report, which showed the company’s global subscriber base stood at 247 million at the end of September.
The company posted revenue of $8.542 billion, in line with analyst expectations. Earnings per share came in at $3.73, higher than Wall Street expectations of $3.49.
Netflix’s forecast of $8.69 billion in fourth-quarter revenue fell slightly short of the $8.77 billion forecast from analysts surveyed by LSEG.
Media companies like Netflix are grappling with labor tensions in Hollywood. While film and television actors have signed a new contract, the actors remain on strike.
The work stoppages halted Netflix productions such as “Stranger Things.” However, the company claims that it has weathered the strikes better than competitors because many of its productions take place outside the United States.
The strikes prompted Netflix to revise its forecasts for content spending. The company estimated it would invest about $13 billion in content by 2023, assuming the studios settle with high-profile actors “in the near future.”
That was less than the $17 billion it expected to spend.
Netflix said it continued to dominate viewership despite the strikes. Netflix programming accounted for 8% of television screen time, second only to YouTube, the company said, citing Nielsen data.
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