Netflix saw a big increase in its subscriber base in its previous quarter, and the streaming company made even bigger changes for the next.
After implementing a restriction on password sharing, Netflix is estimated to have boosted its subscriber base by approximately six million in the third quarter this year. In addition to this, the global streaming company has increased its prices, again.
Beginning in October, in the United States, the premium ad-free plan in the United States increased by $3 per month, to $22.99. The one-stream basic plan rose to $11.99.
Raising prices on ad-free memberships will likely urge members to downgrade to the lower tiers that use ads. "Using these tactics, Netflix will likely double its ad-supported viewership next year," said Insider Intelligence analyst Ross Benes.
The streaming company could also be raising its prices in order to compensate for potentially raising wages and residuals for those associated with the strikes of the Writers Guild of America and SAG-AFTRA unions. The Writers Guild finished their strike but SAG-AFTRA’s is still going.
Netflix is one of few profitable streaming companies. Its biggest competitors have also raised their prices in the past months, including Disney+, Hulu, and Max.