Netflix increased subscription prices for select streaming plans in the United States, Britain, and France, leading to a surge of 10% in its share price as it exceeded new customer acquisition expectations. The company attracted nearly 9 million new subscribers worldwide, surpassing the 6 million forecast by Wall Street analysts surveyed by LSEG.
Netflix attributed this growth to its efforts to curtail password-sharing and a consistent flow of new content, including the global hit "One Piece." The premium ad-free plan in the U.S. saw a $3 per month price hike, reaching $22.99, while the basic plan with a single stream increased by $2 per month.
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However, India has proven to be a different game altogether for the American streaming company which has referred to the market as a “big prize”. Just six months ago, Netflix Co-CEO Ted Sarandos said during the earnings call that the 20-60 per cent price reduction announced in India in December 2021, along with an improved slate, led to 30 per cent improvement in user engagement year-on-year.
Investors responded positively to the news, driving Netflix shares up by over 10% in after-hours trading, reaching $382.99.
As the streaming video pioneer nears market saturation in the United States and faces stiff competition from companies like Walt Disney, Warner Bros Discovery, and others, it continues to explore ways to boost its revenue.