this post was submitted on 17 Oct 2023
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Netflix may hike prices after success of password-sharing crackdown::Netflix's crackdown on password-sharing likely boosted subscribers by about 6 million in the third quarter and the streaming pioneer is expected to set the stage for price increases when it reports earnings on Wednesday.

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[–] [email protected] 4 points 1 year ago

This is the best summary I could come up with:


Oct 16 (Reuters) - Netflix's (NFLX.O) crackdown on password-sharing likely boosted subscribers by about 6 million in the third quarter and the streaming pioneer is expected to set the stage for price increases when it reports earnings on Wednesday.

The only profitable major streamer, Netflix has resisted joining rivals like Walt Disney (DIS.N) in hiking ad-free prices this year and instead curbed password-sharing outside households to tap the more than 100 million viewers who use its service without subscribing.

Five months after calling a strike that plunged Hollywood into turmoil, the Writers Guild of America (WGA) last week approved a new contract with major studios.

After a slow start for the ad plan launched last year, analysts said they expect Netflix will raise prices of its ad-free options in the coming months to nudge more subscribers to the other tier, where commercials help bring in more revenue per user.

"Using these tactics, Netflix will likely double its ad-supported viewership next year," said Insider Intelligence analyst Ross Benes.

Overall, Wall Street expects the streamer to post its strongest quarterly subscriber additions this year, according to LSEG data.


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