The latest figures reveal that 8.8 million people worldwide joined the streaming giant between July and September.
Netflix on Wednesday reported a surge in subscribers over the summer, surpassing industry analysts’ forecasts, an indication that the video streaming service’s ban on password sharing is enticing former freeloaders to subscribe. a paid subscription.
In order to increase its revenues, the streaming giant also announced that it was increasing the price of two of its subscription plans in the United Kingdom, the United States and France.
For Netflix’s most expensive service, the price will increase to 17.99 pounds sterling (20.65 euros) per month in the United Kingdom and 23 dollars (21.82 euros) in the United States. The cheapest ad-free streaming option will now cost £7.99 in the UK and $12 in the US.
Monthly prices for advertised plans and standard plans will remain unchanged in all three countries.
The company has attracted nearly 8.8 million subscribers worldwide between July and September, three times more than during the same period last year.
The increase brought Netflix to around 247 million users worldwide, far more than the 243.8 million predicted by experts surveyed by US business data firm, “FactSet Research.”
Netflix’s financial performance also exceeded the forecasts of analysts who determine investor expectations. In the third quarter, the company earned $3.73 per share, an increase of 20% from the same period a year ago. Revenue increased 8% to $8.54 billion.
The stock price rose more than 12% in extended trading after the latest figures were released on Wednesday.
Netflix stock is up about 30% since the start of the year as there is growing evidence that its video streaming service is doing better than most rivals in a context where The financial limits of many households are being put to the test.
The company has added more than 16 million subscribers since the start of the year, surpassing last year’s 8.9 million users.
In France, the basic and premium plans have increased to €10.99 and €19.99 respectively.
The advertising-financed offering is expected to grow
This year’s increase in subscribers has occurred despite labor unrest in Hollywood, partly linked to complaints from writers and actors about unfairly low pay by video streaming services, such as Netflix.
The Californian company was able to resist the recently ended writers’ strike and the still ongoing actors’ strike by relying on a stock of television series and films already completed in the United States, as well as on productions produced on international markets not affected by American social conflicts.
In a letter to shareholders, Netflix said that about 30% of its new subscribers opt for the ad-supported plan – the cheapest – which is likely to attract more spending from advertisers.
The higher prices of Netflix’s premium service also appear likely to lure more users to the ad-supported option.
“The era of ‘streamflation’ has arrived. Consumers should expect price increases and password sharing limitsand to be attracted by ad-supported options”says Scott Purdy, head of US media for KPMG.
