For basic subscribers in the US, the monthly bill will increase by $2 to $11.99, while premium subscriptions will rise by $3 to $22.99. In the UK, basic subscribers will pay an extra £1, reaching £7.99, and premium subscriptions will be £17.99, marking a £2 increase. This upward shift, though often met with resistance, pleased investors, bolstering Netflix’s market value.
Netflix’s Q3 earnings of $3.75 per share exceeded Wall Street’s predictions of $3.52. The company boasted 247 million subscribers by the quarter’s end, a remarkable 11% increase from the previous year. This surge was partly attributed to older shows licensed from rival studios, many of which halted Netflix content sales after launching their streaming platforms.
However, the industry-wide strikes in Hollywood cast a shadow. Despite a $1 billion reduction in content investment due to the strikes, Netflix’s global content approach, primarily sourcing from regions unaffected by the protests, mitigated losses. Strikingly, over 70% of Netflix’s new subscribers (4 million) hailed from Europe, the Middle East, and Africa, showcasing the company’s international prowess.
While acknowledging industry challenges, Netflix officials maintained optimism, expecting content spending to hover around $13 billion in 2023. If the ongoing actors’ strike is resolved promptly, the company anticipates a content spending surge to $17 billion in 2024, underlining Netflix’s resilience and adaptability amidst the shifting tides of the entertainment landscape.
