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Netflix started password-sharing crackdown, which initially hit its subscriber count but it is estimated that the streaming giant may have boosted subscribers by about 6 million in the third quarter and could now be looking to increase the subscription prices.
Netflix, the only profitable major streamer, will report earnings on Wednesday. Unlike Walt Disney, the company also did not hike the prices of its ad-free subscription this year. Instead with its password-sharing crackdown, the company made more than 100 million viewers pay who were using its service without subscribing, news agency Reuters reported.
Netflix’s plan to boost revenue
The report also cited analysts that Netflix is expected to raise prices of its ad-free options in the coming months after a slow start for the ad plan that it launched last year. They claim that most viewers subscribing to Netflix after the password crackdown have opted for the ad-free plans.
Netflix raised prices across all of its plans last year in the US with Standard tier costing $15.49 a month and the Premium plan costing $19.99 per month. The company also rolled out a $6.99 a month ad-supported plan.
The increase in subscription price of its ad-free tier is expected to nudge more subscribers to the other tier, where commercials help bring in more revenue per user. This is also expected to double its ad-supported viewership next year.
Price hike coming after Hollywood actors strike
Recently, a media report said that Netflix could hike prices after Hollywood actors’ strike ends. The report said that the streaming giant is discussing raising prices in several markets globally, starting with the US and Canada. However, there is no information on how much Netflix will raise prices by.
Netflix has been able to weather the strike due to its larger international presence and strong content slate.
Netflix, the only profitable major streamer, will report earnings on Wednesday. Unlike Walt Disney, the company also did not hike the prices of its ad-free subscription this year. Instead with its password-sharing crackdown, the company made more than 100 million viewers pay who were using its service without subscribing, news agency Reuters reported.
Netflix’s plan to boost revenue
The report also cited analysts that Netflix is expected to raise prices of its ad-free options in the coming months after a slow start for the ad plan that it launched last year. They claim that most viewers subscribing to Netflix after the password crackdown have opted for the ad-free plans.
Netflix raised prices across all of its plans last year in the US with Standard tier costing $15.49 a month and the Premium plan costing $19.99 per month. The company also rolled out a $6.99 a month ad-supported plan.
The increase in subscription price of its ad-free tier is expected to nudge more subscribers to the other tier, where commercials help bring in more revenue per user. This is also expected to double its ad-supported viewership next year.
Price hike coming after Hollywood actors strike
Recently, a media report said that Netflix could hike prices after Hollywood actors’ strike ends. The report said that the streaming giant is discussing raising prices in several markets globally, starting with the US and Canada. However, there is no information on how much Netflix will raise prices by.
Netflix has been able to weather the strike due to its larger international presence and strong content slate.
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