Netflix’s subscription price increase was seen for some streaming plans in the U.S., Britain and France on Wednesday as it shattered expectations for new customers. Netflix price rise had its shares surging 13%.
There are around almost 9 million Netflix subscribers around the globe in the Q3, surpassing Wall Street analysts’ forecast for 6 million Netflix subscribers, according to LSEG. Netflix said it expected a similar number of additions in the current quarter.
Strong Netflix Q3 result
Netflix Q3 strong performance showed it was thriving despite Hollywood labor tensions that shut down a large swath of U.S. production. As it makes many of its shows and movies overseas, it could account for the bulk of its new Netflix subscribers.
Netflix subscribers rise
Netflix pointed to the global success of “One Piece,” a live-action adaptation of the venerable Japanese manga series and an example of its hefty investment in stories with local resonance that travel the world. The streaming giant Netflix’s subscribers also increased as new audiences are attracted to long-running television shows, such as the legal drama “Suits,” which it licensed from Comcast (CMCSA.O), and HBO’s World War Two series “Band of Brothers.”
“These are the times I’m glad we have such a rich and deep and broad programming selection,” Netflix co-CEO Ted Sarandos said after the release of the quarterly results. “The same was true during COVID, when we were able to manage the slate through a prolonged and pretty unpredictable production interruption.”
Hollywood’s film and television writers ratified a new contract this month, but actors remain on strike. Sarandos said Netflix was “totally committed to ending this strike.”
Netflix’s Q3 customer gains represented its strongest quarterly uptick since the second quarter of 2020, when lockdowns early in the global pandemic led to an unprecedented surge in streaming subscriptions.
Netflix price rise
Netflix price rise in the U.S. of its premium ad-free plan is by $3 per month to $22.99. For premium rose by 2 pounds to 17.99 pounds in Britain and by 2 euros to 19.99 euros in France.
PP Foresight analyst Paolo Pescatore said the Netflix Q3 growth was a testament to its recent crackdown on password sharing and the opportunities for growth as it moves into advertising.
“It is firing on all cylinders, with recent efforts all heading in the right direction,” he said.
Netflix subscriber increased globally
Netflix subscription price increase was announced in an earnings report that showed the company’s global subscriber base reached 247 million at the end of September.
Substantial subscriber gains came in Europe, the Middle East and Africa, where Netflix added nearly 4 million subscribers. More than 70% of Netflix subscribers now reside outside the U.S.
“As the competitive environment evolves, we may have increased opportunities to license more hit titles,” Netflix said in its quarterly letter to shareholders.
The company posted revenue of $8.54 billion, in line with analyst forecasts. Earnings came in at $3.73 per share, ahead of Wall Street’s expectation of $3.49.
Netflix Q4 forecast
Netflix’s forecast for fourth-quarter revenue of $8.69 billion was slightly below analysts’ estimates of $8.77 billion.
The writer and actor strikes prompted Netflix to revise its projections on content spending to $13 billion in 2023. This was assuming the studios reach a settlement with striking actors “in the near future.”
That was down from the $17 billion it expected to spend.
Netflix said it continued to dominate viewership. It’s programming accounted for 8% of television screen time, second only to YouTube, the company said, citing Nielsen data.
Netflix stock update
Investors welcomed the news of Netflix subscription price increase, sending its shares climbing to $390.80 in extended trading from a close of $346.19.
