Netflix finished 2023 with 12% revenue growth, up from 6% growth in 2022. “We believe we’ve successfully addressed account sharing, ensuring that when people enjoy Netflix they pay for the service too,” it said. In Tuesday letter to shareholders, Netflix declared its password-sharing crackdown a success, as well. We’ve got the most engaged audience so we believe we’re well positioned to capture some of that ad spend that shifts from linear to streaming,” he said. On the company’s fourth-quarter earnings call, Netflix co-CEO Greg Peters said he had high hopes for Netflix’s ability to snatch ad dollars from traditional TV competitors. On Tuesday, Netflix sounded a positive note on its growing advertising business. In October, Netflix said it raised the price of its premium ad-free plan to $22.99 while its one-stream basic plan rose to $11.99.Įarlier this month, Amy Reinhard, Netflix’s president of advertising, said Netflix’s ad tier hit more than 23 million monthly memberships. The plan is significantly cheaper than Netflix’s ad-free offerings, at $6.99 per month in the US. In the past year, the company implemented several initiatives aimed at adding subscribers, including a password-sharing crackdown that pushed password “borrowers” into creating their own subscriptions and introducing an advertising-supported subscription tier for $6.99. Password sharing and Netflix’s foray into ads Overall, Netflix now has a record number of subscribers at 260.3 million.Īnd investors seem to be cheering: Netflix’s stock jumped more than 7% in after-hours trading Tuesday. While Netflix added 1.2 million paid subscribers in the fourth quarter in the US, much of the strongest subscriber growth came internationally from Europe and Asia. The company added more than 13 million subscribers for the quarter, compared to Wall Street’s expectation of 8.7 million. The decision was taken after it doubled its content by adding its Star service to Disney+, offering programmes designed to appeal to a wider non-Disney audience, such as Lost, Desperate Housewives, 24 and The X-Files.Netflix announced a major boost in sign-ups in the fourth quarter on Tuesday. Its rival Disney+, which launched in the UK in early 2020, raised its prices from £5.99 to £7.99 last year. The UK is Netflix’s biggest production base for TV shows and films outside the US with a $1bn annual content spend.īefore the two rounds of price rises Netflix’s most popular tier cost £8.99 and its premium plan cost £11.99. We offer a range of plans so members can choose a price that works best for them.” “Our updated prices reflect the investment we have made in our service and catalogue and will allow us to continue making the series, documentaries and films our members love as well as investing in talent and the creative industry. “We have always been focused on providing our members both quality and clear value for their membership,” said a Netflix spokesperson. Netflix said the increases were the inevitable cost associated with maintaining a continual pipeline of new content for viewers amid rising competition from rivals including Amazon’s Prime Video, Disney+ and HBO Max. Existing subscribers will get 30 days notice by email, depending on their billing cycle. The price rises, which were expected after a hefty increase for its US subscribers in January, will come into effect immediately for new subscribers. In Ireland the basic plan will rise by €1 to €8.99, the standard package will increase from €12.99 to €14.99 and the premium tier will rise from €17.99 to €20.99. The cost of Netflix’s premium plan, which allows Netflix to be watched on up to four different screens at a time and downloads to up to four devices, will increase by £2 a month to £15.99. The entry-level plan, which allows viewers to watch only one screen at a time and download to one device, will rise by £1 a month to £6.99. It is also raising the price of its basic package for the first time in a decade. Netflix, which has about 14 million UK subscribers and 600,000 in Ireland, according to Ampere Analysis, is to raise the price of its most popular package, which offers simultaneous viewing on two screens, HD and the ability to download shows and films to two devices, to £10.99 a month.
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