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Netflix hikes prices in some markets, gains 9 mn subscribers in Q3

Netflix raised prices of membership packages in US, UK and France even as it posted higher growth in profits and subscriber numbers in Q3

Netflix hikes prices in some markets, gains 9 mn subscribers in Q3
[Source photo: Chetan Jha/Press Insider]

Streaming platform Netflix raised the prices of some membership packages in the US, UK and France even as it reported higher-than-expected growth in profits and subscriber numbers in the July-to-September quarter.

Revenue grew 8% year-on-year (y-o-y) in the third quarter to $8.5 billion, while its global subscriber base grew by 9 million to 247.15 million.

Netflix bumped up the monthly fee of its premium ad-free package in the US by $3 to $22.99, while in the UK and France, the premium plan rose by 2 pounds to 17.99 pounds and 2 euros to 19.99 euros, respectively.

The market responded favorably, with Netflix stock soaring to $390.80 in after-hours trading from its closing price of $346.19.

Netflix said its diverse content strategy and global reach are reflected in the success of titles such as One Piece and Suits.

The live-action adaptation of One Piece, based on the best-selling manga series, garnered widespread acclaim and 62 million global views, it said. This marked a milestone by becoming the first English-language title to debut at No. 1 in Japan and held the top spot on Netflix’s global Top 10 for three consecutive weeks.

The achievement underscores the effective collaboration between Netflix’s US creative executives and their APAC counterparts, resulting in a product that resonated with both core fans and new audiences, the firm said.

Suits, a legal drama originally aired on the USA Network, shattered viewing records upon its Netflix debut, with Nielsen reporting 614 million view hours in the US alone over 12 weeks, Netflix said.

Globally, the series racked up 1 billion view hours, the firm said, adding that the success of such licensed titles indicates that its strategy of complementing original content with licensed programming continues to pay dividends, driving both viewer engagement and additional revenue streams.

The streaming platform added that it will stay focused on improving its content base by tapping best-in-class originals and licensed titles from around the world.

Other such hits for Netflix in the past quarter included The Witcher (season 3), Top Boy (season 3), Sex Education (season 4), Love at First Sight and Suits, apart from content in vernacular languages such as Dear Child (Germany), Sintonia season 4 (Brazil), Guns & Gulaabs (India) and Class Act (France).

“These are the times I’m glad we have such a rich and deep and broad programming selection,” Netflix co-chief executive officer Ted Sarandos said. “The same was true during Covid, when we were able to manage the slate through a prolonged and pretty unpredictable production interruption.”

“We’re heading toward a world where streaming data will be more available,” Sarandos said in the company’s third-quarter earnings call. “It will be much more transparent.”

While detailed streaming metrics for series and films largely remain undisclosed, Netflix regularly shares weekly top 10 lists of its most-watched content. For the past three years, Nielsen has also been publishing top 10 lists specific to the U.S., and Disney+ has started to highlight some of its own successful titles.

Netflix claimed to maintain a strong hold on viewership, taking up 8% of TV screen time in the US and ranking just behind YouTube, according to data provided by Nielsen.

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