After releasing its Q3 earnings results, Netflix has announced that pricing on Basic and Premium members is going up, but Standard member pricing will stay the same.
On Wednesday, October 18, Netflix released its third-quarter earnings results, and they were favourable for the company. Summertime subscriber gains were actually ahead of where they had projected, saying “Revenue growth in Q3 reflected a 9% year-over-year increase in average paid memberships.” So with the increase in Q3 revenue, they’ve also announced an increase in membership price.
In the third quarter report, Netflix says, “While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more. Starting today, we’re adjusting prices in the US, UK and France.”
The new pricing bumps up the Basic and Premium US plans by $2, making Basic now $11.99 and Premium $22.99. Like the US, pricing for Basic and Premium in the UK and France is going up, while the Ads and Standard plans will stay the same. In the UK, the Basic and Premium plans will cost £7.99 and £17.99, while France’s Basic plan hikes to 10.99€ and the Premium plan jumps to 19.99€.
Netflix added 8.8 million new subscribers globally during the third quarter, and the stock price jumped after the release of the earnings report. The base NFLX price was $346 before the Q3 earnings were released, and as of this post, it is $401.50, which is an almost 13% increase in one day. It was a good day financially for Netflix, and they’ve announced what’s their next order of business by saying, “Our immediate priority is building our ad membership so that Netflix becomes an essential buy for advertisers, which is key for advertising to become material to our business.”
Fans looking for more information can check out the third-quarter financial earnings or head over to the Netflix help site for everything else.
