Netflix has successfully increased its subscriber count by an estimated 6 million in Q3 by enforcing stricter password-sharing rules. This move, unique among major streaming platforms, has positioned Netflix for a potential price increase after its Q3 earnings report.
While rivals like Walt Disney have raised their ad-free prices, Netflix has chosen a different path. By limiting password-sharing, it has tapped into a large pool of over 100 million consumers engaging with its platform without a subscription.
Netflix’s Resilience and Future Plans
Despite the Hollywood actors puhch, Netflix’s robust global footprint and content lineup have kept it stable. It’s now expected to raise its ad-free prices, pushing more subscribers towards its ad-inclusive tier, which brings in more profit per user.
Most new subscribers after the password policy change have chosen ad-free plans. The ad-inclusive plan costs $6.99 a month,while ad-free options start at 15.49.
The ad tier is projected to contribute about $188.1 million in Q3 revenue, with an increase of 2.8 million subscribers, according to Visible Alpha. Wall Street expects Netflix to record the year’s highest quarterly subscriber growth.
Q3 revenue is likely to rise by 7.7% to $8.54 billion, The swiftest expansion in five quarters, attributable to popular series such as “Sex Education” and “Virgin River”. In summary, Netflix’s strategic response to password-sharing and potential price increase underscores its innovative approach to growth in a competitive market.
