Netflix price increases 2023
Netflix’s response to password-sharing restrictions likely added around six million subscribers in Q3, setting the stage for potential Netflix price increases. As the sole profitable major streaming platform, Netflix didn’t raise ad-free prices this year but focused on curbing password-sharing outside households.
Analysts at Bernstein note that Netflix, with its recent price increases, now resembles a utility. This shift presents growth challenges for a maturing company.
The end of the Hollywood actors’ strike may offer Netflix an opportunity to consider price adjustments. Netflix’s international presence and strong content helped it weather the strike.
Most post-crackdown subscribers opted for ad-free plans, prompting Netflix to consider raising prices for ad-free options to encourage users to choose ad-supported tiers.
Netflix’s ad-supported tier is projected to generate about $188.1 million in Q3 revenue, with an estimated 2.8 million new subscribers.
Overall, Wall Street anticipates Netflix will post its strongest quarterly subscriber growth this year.