Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Sign in to your CNN account More price offerings could allow “entertainment fans from around the world that have different needs to be able to access the great story-telling that our creative partners are doing at a price-point that works for them,” Peters said.ĬNN’s David Goldman contributed to this report. On the company’s earnings call, Peters said the company plans to eventually offer an even wider range of price points for Netflix subscriptions to grow its subscriber base. That’s why the company has been pushing its lower-priced ad tier, in which it can hide some of the cost by keeping prices low for consumers but charge more to advertisers over time. Netflix is one of the few profitable streaming services, and investors are demanding Netflix continue to grow its earnings. And the actors, who are still on strike, are demanding more, too. Making streaming shows will get only more expensive after the end of the writers strike, which boosted pay and benefits for Hollywood writers. Raising prices is one way to solve that issue. Meanwhile, consumer demand for streaming services has slowed dramatically since the pandemic, cutting into streamers’ revenue growth. Hollywood studios continue to demand more from streaming services for their TV shows and movies, as production costs rise. Discovery, raised prices in January 2023 by $1 a month – its first-ever price hike. And Max, owned by CNN parent company Warner Bros. Disney+ in August hiked prices by $3 a month – for the second time this year. Netflix last raised prices in January 2022, but its biggest competitors have all raised prices since then. Raising prices along with its competition “From a strategic perspective, we believe we can build games into a strong content category, leveraging our current films and series.” “Games is a huge entertainment opportunity,” Peters said. On the earnings call, co-CEOs Sarandos and Greg Peters also stressed Netflix’s investments in newer business areas, like gaming and sports content, to draw new subscribers. “We need to get a deal done that respects all sides as soon as we possibly can.” “The industry, our communities and the economy are all hurting,” Sarandos said Wednesday. Last week, negotiations between SAG-AFTRA, which represents Hollywood’s actors, and the studios, were suspended after the two sides disagreed about SAG-AFTRA’s latest proposal. On Netflix’s third-quarter earnings call, Ted Sarandos, the company’s co-CEO, said the company is “totally committed” to ending the actors strike after an agreement with the writers guild was reached last month. In a letter to shareholders, Netflix called the last six months “challenging” given this summer’s writers’ guild and actors’ guild strikes. Netflix’s stock jumped by 12% in after-hours trading. Earnings per share for the quarter came in at $3.73. The company brought in $8.54 billion in revenue last quarter, boosted by higher-than-expected growth of its membership base. Netflix also said that adoption of its advertising tier plans continues to grow, with membership up almost 70% compared to the previous quarter. The era of cheap streaming is officially over The Disney+ website on a laptop computer in the Brooklyn borough of New York, US, on Monday, July 18, 2022. Rather, many customers who previously borrowed passwords from others are converting into full paying subscribers, according to Netflix. Netflix said it has officially rolled out its “paid sharing” program in every region where the company operates, and fewer customers than they expected cancelled their memberships as a result. Netflix attributed some of its strong subscriber growth to its continued password-sharing crackdown. Overall, Netflix reported 247 million paid global subscribers in the third quarter. That’s compared to 2.4 million in the third quarter last year. The company reported a 9% year-over-year increase in average paid memberships, adding 8.8 million subscribers last quarter. Netflix also announced price increases for some subscription tiers in the United Kingdom and France. All other plans, including its entry-level, $6.99-a-month ad-supported tier, will remain at the same monthly cost. Its one-stream basic plan will rise to $11.99 in the United States. The streaming giant said in its third-quarter earnings report that its premium ad-free plan in the United States will increase by $3 per month, to $22.99, starting Wednesday.
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