October 16th 2023.
Netflix's crackdown on password-sharing has had a positive effect on their subscriber count, with an estimated 6 million increase in the third quarter. This boost could be attributed to Netflix's unique approach of curbing password-sharing outside households, rather than joining competitors like Walt Disney in raising prices.
Analysts at Bernstein commented that Netflix now resembles a utility in many markets, and the challenge of remaining a successful business is to continue to find growth. Earlier in October, there was speculation that Netflix could raise prices after the end of the Hollywood actors strike. Thankfully, this strike concluded last week with the Writers Guild of America approving a new contract with major studios.
Netflix's ad plan, which was launched last year, has finally picked up steam. As a result, analysts predict that Netflix will raise prices of their ad-free options in the following months, to encourage more people to choose the ad-supported tier. So far, most new subscribers have been opting for the ad-free plans, which start at $15.49 per month.
According to Visible Alpha estimates, Netflix's ad tier is expected to bring in a revenue of $188.1 million in the third quarter ended September, with a total of 2.8 million subscribers. Wall Street forecasted that this would be the streamer's strongest quarterly subscriber additions of the year.
In addition, the third quarter revenue is predicted to increase 7.7% to $8.54 billion, the largest growth in five quarters. This success can be attributed to the strong content of Netflix's programming, such as the recent seasons of Sex Education and Virgin River.
Overall, Netflix's strategies to increase their subscriber count have been successful, with the potential of further growth if they continue to produce quality content and adjust their pricing accordingly.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
