at the beginning of 2023, it started fighting against sharing accounts with people outside the household of the main profile owner. Although the decision was met with criticism and user rebellion, it turned out to be profitable. In the second quarter of the year, the platform’s global subscriber count increased to 238.39 million, with revenue growing 2.7 percent year-on-year.
Netflix plans price increases. Fighting account splitting wasn’t enough
The third quarter of the year also turned out to be very fruitful for Netflix. As reported by nypost.com, the number of website customers increased by more six million users. Apparently, the profits from limiting the ability to share account passwords are not enough for the company. The streaming leader is preparing the ground for price increases.
“Netflix resembles a public utility in many markets,” explain Bernstein analysts. Researchers emphasize that the platform is perceived in a way that generates many challenges, but it is worth remembering that it is a commercial company focused on development. According to foreign media reports, an increase in subscription prices on Netflix may appear after the end of the Hollywood actors’ strike.
Netflix wants users to watch ads
Analysts say Netflix coped well with the strike wave. Mainly thanks to its wide, international reach and rich offer of titles. However, in the coming months, expect price increases for users with ad-free packages. It is said that this will be an attempt to encourage customers to switch to a subscription with advertising, which in turn is more profitable for Netflix. So far, most of the platform’s viewers choose the option without advertising content.
Currently, the ad-supported subscription plan costs $6.99 per month, while the ad-free package starts at $15.49. If the offer appears in Poland, prices may be similar – about PLN 30 for a package with advertising and PLN 60 for an option without additional commercial content.
“With this tactic, Netflix will double its ad viewership next year,” explains Insider Intelligence analyst Ross Benes. According to Visible Alpha’s estimates, advertising content views are expected to generate revenue for the platform of approximately $188.1 million in the third quarter, while the increase in new subscribers may amount to an estimated 2.8 million.
We do not know whether the changes will also apply to Polish users. However, as history shows, sooner or later the ideas introduced locally by Netflix become effective in all countries where viewers have access to the application.
Source: Gazeta
Bruce is a talented author and journalist with a passion for entertainment . He currently works as a writer at the 247 News Agency, where he has established himself as a respected voice in the industry.
