Netflix is parlaying a strong quarter into a policy change. The streamer will raise prices on several of its subscription options, including its basic ad-free tier, after adding 8.76 million new customers during the third quarter of 2023.
Bloomberg reported that the customer uptick gave Netflix its “best quarter for subscriber growth in years.” The streamer beat analyst estimates in Q3; over the 2023 calendar year, Netflix is projected to add 20 million new subscribers. If it does, it will more than double last year’s customer gains.
Netflix execs partially attributed the company’s positive quarterly returns to its crackdown on password sharing. Though Co-CEO Greg Peters initially believed that move would be unpopular, the streamer received a wave of new subscriptions after limiting accounts to individual households.
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Those added subscribers have bumped up Netflix’s bottom line, as have work stoppages in the entertainment industry. Though it may seem unintuitive, the recently-resolved WGA strike and the ongoing SAG-AFTRA strike helped Netflix save a ten-digit sum it would have otherwise spent on content-related costs. The company noted that the strikes drove viewers into its massive back catalog, with classic shows like Suits (pictured above) emerging as favorites.
In total, Netflix’s Q3 2023 revenue came out to $8.54 billion. That was good for a 7.8% increase and a slight improvement over projections.
Netflix hopes to continue improving its financial situation by raising prices on a few of its tiers. In the United States, the most expensive Netflix plan will go up $3 to $23 per month, while the basic ad-free subscription will be hiked $2 to $12 per month.
Rising prices could drive more subscribers to Netflix’s cheapest plan, which costs $6.99 per month. The streamer’s ad-supported option launched late last year, but it has only produced so-so results during its first few months on the market. As Netflix continues to build that tier, it is shaking up its personnel in its fledgling ads division. Former President of Advertising Jeremi Gorman recently left that role, with VP of Studio Operations Amy Reinhard replacing her.
