Netflix is once again raising subscription prices despite increased profits during its most successful quarter in years in subscriber growth.
Streaming platform Netflix is coming off its biggest quarterly subscriber growth since 2020 after a crackdown on password-sharing. The company finally grew tired of friends and family members using the same account from different locations after losing nearly a million subscribers in 2022, according to the BBC.
Netflix put an end to its friendly ways and began charging customers fees if they wanted their accounts to work in more than one household. This resulted in an added 8.8 million subscribers from July to September 2023.
Quarterly revenues are also reportedly up by 7.8% year over year to $8.5 billion. Profits increased to $1.67 billion.
Additionally, Netflix shares essentially skyrocketed overnight since the announcement, ending October 18, 2023 at around $346 per share and reaching more than $400 the next day.
New subscribers and increased profit did not stop the former mail-in service from increasing its prices in the American, French, and U.K. markets, however.
The lowest-tier plan without ads, which is only available to existing customers, will increase from $9.99 to $11.99 per month. Premium accounts will see a $3 increase from $19.99 to $22.99 per month. Meanwhile, a $6.99 ads-included plan along with the $15.49 standard ad-free plan will remain the same price, according to Business Insider.
The company is fresh off an announcement days earlier that it would open brick-and-mortar locations to deliver a Netflix experience. While the company has rolled out dozens of pop-up stores in recent years, the newly announced Netflix House would reportedly be a fixed establishment where fans can immerse themselves in fantasies and universes from their favorite franchises.
The outlets will combine retail, dining, and ticketed live entertainment.
Netflix has reportedly planned to open two Netflix Houses by 2025 with more internationally soon thereafter.
“We’ve seen how much fans love to immerse themselves in the world of our movies and TV shows, and we’ve been thinking a lot about how we take that to the next level,” said Josh Simon, Netflix vice president of consumer products.
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