Netflix Reports Q3 Revenues and a Price Hike for Some Subscriptions

Netflix reported that it earned a net income of $1.7 billion on revenue of $8.5 billion for the quarter ending September, in line with its expectations. Unfortunately, it also revealed that it was raising prices for some of its monthly subscription tiers in the U.S., UK, and France.

“Revenue in Q3’23 grew 8 percent year-over-year,” Netflix noted in a letter to shareholders. “This was slightly above our forecast due to higher-than-expected member growth.”

On that note, Netflix added 8.76 million new paid subscribers in the quarter and now has over 247 million paid subscribers, a growth of 10.8 percent year-over-year (YOY), and its fastest subscriber growth during the interim.

The firm also reported that it was the second most-watched streaming service in the U.S. in the previous quarter, with a 7.8 percent usage share, behind YouTube, with 9 percent. Amazon Prime Video (3.6 percent), Hulu (3.6 percent), and Disney+ (1.9 percent) rounded out the top five.

“In the U.S., we had the most watched original series for 37 out of the first 38 weeks of 2023 and the most watched movie in 31 of those 38 weeks,” Netflix said. “Our share in the U.S. gives us substantial room for growth as we continue to improve the quality of our slate.”

And then there’s that price hike.

“In addition to building engagement by creating movies and series that members will love, we’re also focused on improving monetization,” the company noted. “And as we deliver more value to our members, we occasionally ask them to pay a bit more.”

Here’s the damage. In the United States, the Netflix Standard with ads and Standard subscription prices remain the same at $6.99 and $15.49, respectively. But Netflix Basic will go from $9.99 to $11.99 per month and Netflix Premium will jump from $19.99 to $22.99 per month. (Netflix no longer offers the Basic plan in the U.S. and UK, but it remains available to previous subscribers.)