Netflix filed its latest financial report, and after revealing that it beat Wall Street expectations, with the help of initiatives like ending account sharing, the value of its shares rose more than 12%.
Along with greater control over password sharing, Netflix says the new ad-supported tier helped it add more than 8.76 million subscribers between July and September 2023, well above expectations of 5.49 million subscribers.
It’s the best increase in subscriptions since the second quarter of 2020, when social isolation was imposed in much of the world, taking Netflix’s subscriber count to 247.15 million, again well above the 243 million expected.
In addition to these amazing results, Netflix announced an increase in prices for countries such as the United States, starting next Wednesday. According to Netflix executives, this will help the company get more money to invest.
Here are the highlights:
- It recorded an increase of 8.76 million subscribers
- The total number of subscribers reached 247.15 million
- The ad-supported plan grew 70% in this quarter compared to the previous quarter
- 70% of subscribers are from outside the United States
- More than 4 million of our new subscribers are outside the United States
- The movie “Love at First Sight” and the series “One Piece” were presented as examples of popular content on the service
- Netflix also highlighted the Suits and Harry & Meghan series
- The ad-supported plan will still be priced at $6.99 in the US
- Prices for the Basic plan will range from $9.99 to $11.99 in the US
- The cost of the premium plan will range from $19.9 to $22.99 in the USA
- Prices will also rise in France and the United Kingdom
- The expected increase in production costs after the writers’ strike ends and many works resume
- Netflix has agreed with unions to improve conditions and pay writers
- An 11% increase in revenue ($8.69 billion) is expected during the fourth quarter
- The expected increase in subscriptions is similar to that recorded in the quarter to which this report refers
- Profit margins are expected to increase by 2% to 3% in 2024
- It will make adjustments to the compensation model for key executives, but it will still be based on company performance
- Netflix CEO Ted Sarandos and Reed Hastings will each earn more than $50 million in 2022.
