Netflix raises prices up to 17% amid new contracts, licensing costs
Enlarge / The Netflix logo at the entrance to Netflix Albuquerque Studios film and television production studio lot.
Having earned a 22 percent margin on $8.5 billion in revenue and picked up nearly 9 million customers from its crackdown on shared passwords, there's only one thing left for Netflix to do as it rounds out 2023: raise prices. The streaming giant will not, it turns out, be waiting for the actors' strike to end.
Starting today Netflix's non-HD, one-screen-at-a-time Basic plan will be $11.99 per month, up $2, or 16.7 percent, from the $9.99 price set during Netflix's last price increase in January 2022. The Standard package remains $15.49 per month, while the Premium plan, with 4K resolution and four screens, was bumped from $19.99 to $22.99 per month, about 13 percent. The "Standard with ads" plan remains at $6.99.
In its letter to shareholders for Q3 2023, Netflix states that adoption of ads-included plans grew 70 percent from Q2 to Q3, and that 30 percent of new signups are for ad-based plans. Making people pay for password-sharing also had a big impact, as the last quarter saw 8.8 million paid net subscriber additions versus the 2.4 million added the same quarter in 2022, due to "the roll out of paid sharing, strong, steady programming and the ongoing expansion of streaming globally." Netflix now stands at 247 million subscribers worldwide.