{"id":15033,"date":"2023-10-17T10:21:05","date_gmt":"2023-10-17T10:21:05","guid":{"rendered":"https:\/\/news.pakistaninewspaperlist.com\/netflix-may-hike-prices-after-success-of-password-sharing-the-express-tribune\/"},"modified":"2023-10-17T10:21:05","modified_gmt":"2023-10-17T10:21:05","slug":"netflix-may-hike-prices-after-success-of-password-sharing-the-express-tribune","status":"publish","type":"post","link":"https:\/\/pakistaninewspaperlist.com\/news\/netflix-may-hike-prices-after-success-of-password-sharing-the-express-tribune\/","title":{"rendered":"Netflix may hike prices after success of password-sharing | The Express Tribune"},"content":{"rendered":"
\n

\u00a0Netflix’s\u00a0crackdown 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.<\/p>\n

The only profitable major streamer, Netflix has resisted joining rivals like Walt Disney\u00a0(DIS.N)<\/a>\u00a0in 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.<\/p>\n

“Netflix now closely resembles a utility in many markets,” analysts at Bernstein said. “The challenge of being labeled a utility is how a maturing company continues finding growth.”<\/p>\n

It could hike prices after the end of the\u00a0Hollywood actors strike<\/a>, a media report said earlier in October.<\/p>\n

Five months after calling a strike that plunged Hollywood into turmoil, the Writers Guild of America (WGA) last week approved\u00a0a new contract<\/a>\u00a0with major studios.<\/p>\n

Netflix, however, has weathered the strike well thanks to its larger international presence and strong content slate.<\/p>\n

<\/p>\n

Reuters Graphics<\/p>\n

\"Illustration<\/p>\n

Smartphone with Netflix logo is placed on a keyboard in this illustration taken April 19, 2022. REUTERS\/Dado Ruvic\/File Photo\u00a0Acquire Licensing Rights<\/a><\/p>\n

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.<\/p>\n

So far, most viewers subscribing to Netflix after the password crackdown have opted for the ad-free plans, analysts said. Its standard plan with ads costs $6.99 a month, while the ad-free plans start at $15.49.<\/p>\n

“Using these tactics, Netflix will likely double its ad-supported viewership next year,” said Insider Intelligence analyst Ross Benes. He expects Netflix to show more ads to users over time, catching up with rivals.<\/p>\n

The ad tier is expected to bring in some $188.1 million in revenue in the third quarter ended September, with subscriber additions of 2.8 million, according to Visible Alpha estimates.<\/p>\n

\"Reuters<\/p>\n

Reuters Graphics<\/p>\n

Overall, Wall Street expects the streamer to post its strongest quarterly subscriber additions this year, according to LSEG data.<\/p>\n

Revenue in the third quarter likely rose 7.7% to $8.54 billion, the fastest growth in five quarters, thanks to strong programming that included the latest seasons of “Sex Education” and “Virgin River”.<\/p>\n<\/div>\n