netflix price increases in uk

Netflix Price Increases In UK Due to More People Watching

Netflix price increases in UK of its premium subscriptions, impacting American and French customers as well. Despite efforts to curb password sharing, the demand for Netflix remains strong.

During July to September, nearly nine million households worldwide subscribed to Netflix, marking the most significant increase since the early days of COVID-19 lockdowns in 2020. This exceeded expectations, bringing the total number of Netflix customers to 247 million globally.

Upcoming Growth and Price Changes:

Netflix expects to get nine million more subscribers by the end of the year, including the important Christmas time. However, they raised prices in the UK, especially for the premium ad-free plan, which now costs £17.99, which is £2 more.

The basic plans remain at £7.99, while ad-supported and standard subscriptions maintain their current pricing. This move led to a boost in Netflix’s shares, rising by up to 13% in after-hours trading.

Efforts to Curb Password Sharing:

To address the issue of password sharing, Netflix has introduced an extra fee to allow more than one household to share the same account. This feature accounted for approximately 30% of the new sign-ups in countries where it was available. Many users appear to prefer this option rather than canceling their subscriptions.

Financial Results:

Netflix’s latest financial results reveal that quarterly revenue increased by 7.8% year-on-year to $8.5 billion (£7 billion), with profits reaching $1.67 billion (£1.38 billion). These strong numbers indicate that Netflix’s recent efforts to address password sharing and subscriber attrition have paid off.

Positive Outlook and Future Price Rises:

Ben Barringer, an equity research analyst at Quilter Cheviot, believes that Netflix’s recent improvements have solidified its position in the film and TV industry.

He notes that the company now guides its sales growth to be back in double-digit growth, and with planned price increases in the US from 2024 and a strong content lineup, Netflix appears to be on a strong path for the future.

Netflix price increases in UK:

The recent price hike in the UK comes after the removal of the basic ad-free option for new or returning customers and an announcement that account sharing outside of households will incur an extra £4.99 per month fee. It aligns with the trend of “streamflation,” with the average monthly cost of major streaming services rising almost 25% in a year.

Strong Subscriber Growth:

Netflix keeps getting more customers, with 8.8 million new subscribers in the third quarter, more than what experts thought (they expected 6 million more).

In total, there are now over 247 million subscribers. They also made more money, with revenue going up by 7.8% to £7 billion, and profits increased by 20% to £1.4 billion. Netflix price increases in UK.

Netflix’s Performance in a Competitive Market:

Netflix’s stock price has risen by about 30% this year, indicating its success in a competitive streaming market. Despite ongoing labor disputes and strikes in the entertainment industry, Netflix has managed to maintain its subscriber growth by utilizing a backlog of completed content. Netflix price increases in UK.

To strengthen its library of original programming, Netflix plans to invest approximately $17 billion in TV series and films next year.

Crackdown on Password Sharing:

Netflix’s decision to crack down on password sharing has not only prompted viewers to subscribe to their accounts but also generated additional revenue.

Current subscribers can share their accounts with individuals outside their households by paying higher monthly fees. Netflix remains optimistic about converting more “borrower households” into subscribers in the coming months.

Exploring Advertising Opportunities:

Netflix has introduced a low-priced option that includes advertising, aiming to diversify its revenue sources. While the advertising feature hasn’t significantly impacted the company yet, it holds potential.

Netflix’s rich viewer data can help advertisers target their commercials more effectively, similar to platforms like Google and Facebook. Netflix price increases in UK.

In conclusion, Netflix’s recent price increases in the UK, strong subscriber growth, and evolving strategies in response to password sharing indicate the company’s resilience and its drive to maintain a leading position in the competitive streaming market.

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