Netflix has recently implemented a price hike for its streaming plans in the United States, United Kingdom, and France. This strategic move, rather than deterring customers, has been met with a surge in new subscribers that led to a 13% boost in the company’s shares.
In the third quarter, Netflix welcomed nearly 9 million new subscribers globally, surpassing the anticipated 6 million. This growth comes despite Hollywood labor disputes that have disrupted US production, highlighting the benefits of Netflix’s overseas filming strategy.
Key to Netflix’s success is its focus on local narratives with universal appeal, such as the live-action adaptation of the classic Japanese manga series, “One Piece” The company has also drawn new viewers to established series like “Suits” and “Band of Brothers.”
The third quarter marks Netflix’s most substantial growth since Q2 2020, when global lockdowns triggered an unparalleled surge in streaming subscriptions. As part of its latest strategy, Netflix has increased the price of its premium ad-free plan in the US, UK, and France.
These moves have been met with investor approval, as evidenced by a significant rise in Netflix shares. Analyst Paolo Pescatore attributed Netflix’s third-quarter growth to its recent measures to curb password sharing and its potential for expansion into the advertising sector. In summary, Netflix’s strategic decisions and content choices have strengthened its position in the streaming industry.
