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Netflix raises prices again after strong subscriber growth

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Netflix reported third-quarter earnings and is doing well. Revenue increased as the company added 9 million subscribers worldwide.

Netflix is also using this opportunity to raise the prices of some of its U.S., U.K., and French plans to differentiate ad-free plans from its entry-level ad-supported plan. New subscribers to the most expensive plan will pay $22.99 per month.

Let’s step back and examine Netflix’s current situation. Netflix cracked down on password sharing in its home market and dozens of others in May. The third quarter is the first full quarter under the new rules, so we can see the effect of password sharing.

The company removed the basic tier in the U.S. and U.K. two months ago to simplify its offering. People must pay a lot to remove Netflix ads.

Reports suggest that many customers are experiencing subscription fatigue and considering canceling some streaming subscriptions, but Netflix still has room for growth, especially with advertising revenue.

The company has 247.15 million subscribers. The number of subscribers increased 8.76 million this quarter. Netflix subscribers haven’t grown that much since Q2 2020, when Covid lockdowns were enforced worldwide.

Netflix earned $3.73 per share on $8.5 billion in revenue this quarter. As ads plan subscribers rise almost 70% quarter-over-quarter, ads are contributing more to the bottom line. Nearly a third of new subscribers use ads.

Netflix shares are up 13.75% pre-market ($393.79 per share) on good news for shareholders. However, subscribers will be unhappy because the company will raise prices for some plans again in three key markets. Full breakdown here.

In the U.S.:

  • Standard with ads: $6.99 per month (no change)
  • Basic (no longer available): $11.99 per month (up from $9.99)
  • Standard: $15.49 per month (no change)
  • Premium (with 4K streaming): $22.99 per month (up from $19.99)

In the U.K.:

  • Standard with ads: £4.99 per month (no change)
  • Basic (no longer available): £7.99 per month (up from £6.99)
  • Standard: £10.99 per month (no change)
  • Premium (with 4K streaming): £17.99 per month (up from £15.99)

In France:

  • Standard with ads: €5.99 per month (no change)
  • Basic (still available in France for now): €10.99 per month (up from €8.99)
  • Standard: €13.49 per month (no change)
  • Premium (with 4K streaming): €19.99 per month (up from €17.99)

New subscriptions start at these prices today. Bills for existing subscribers will rise in the coming weeks.

As Editor here at GeekReply, I'm a big fan of all things Geeky. Most of my contributions to the site are technology related, but I'm also a big fan of video games. My genres of choice include RPGs, MMOs, Grand Strategy, and Simulation. If I'm not chasing after the latest gear on my MMO of choice, I'm here at GeekReply reporting on the latest in Geek culture.

Geek Culture

For the seventh year in a row, Capcom has made more money than ever before

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Japanese games publisher Capcom has consistently excelled in the industry for numerous years, and its latest annual financial results continue to showcase its success. With a string of blockbuster games in its flagship franchises, the company has achieved unprecedented profits for the seventh year in a row, marking the 11th consecutive year of growth in operating income.

In the financial year ending March 2024, there has been a significant increase in all figures when compared to the previous year. The net sales for the period reached a staggering $977 million, showing a remarkable increase of 21 percent. The operating income also saw a notable growth of 12.3 percent, amounting to $366 million. Similarly, ordinary income experienced a significant rise of 15.7 percent, totaling $381 million. Lastly, the net income attributable to owners of the parent company surged by 18.1 percent, reaching an impressive $278 million. Overall, the performance is quite impressive.

Software sales are the primary factor behind these impressive record-high figures. During this financial period, Resident Evil 4 sold an impressive 3.39 million units, making it a significant contributor. However, it’s important to note that this is not the only measure of success. In fact, an impressive 15 games managed to sell over 1 million copies within the same timeframe. Street Fighter 6 has managed to sell an impressive 3.3 million copies, while Dragon’s Dogma 2 has also found success with 2.6 million copies sold. It’s worth noting that even older titles like Monster Hunter World and Resident Evil 7 continue to hold their own in the gaming landscape. Dragon’s Dogma: Dark Arisen, the updated version of the original game, managed to sell nearly 1.7 million copies, largely fueled by the anticipation for the sequel.

Capcom’s forecast for its next annual results is filled with optimism, as one would expect. The company is projecting net sales of approximately $1 billion and operating income of around $410 million, marking another significant milestone.

In the near future, the publisher has revealed some exciting titles like Kunitsu-Gami: Path of the Goddess and Monster Hunter Wilds. Fans can also anticipate the development of new installments in the Resident Evil series, such as Resident Evil 9.

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Gaming

Ciri from The Witcher expresses her hope that fans will give Liam Hemsworth a fair chance in his portrayal of Geralt

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Netflix’s The Witcher has been at the forefront of the recent trend of video game IP transitioning to TV, alongside HBO’s The Last of Us and Amazon’s Fallout adaptations. In 2022, it was announced that Henry Cavill would be stepping away from his role after Season 3, making way for Australian actor Liam Hemsworth to become The White Wolf in Season 4.

In an interview with Collider (courtesy of Eurogamer), Freya Allen, the actress who plays Ciri in the series, has reached out to fans who may find the change to be a challenge. Allen expressed his view of the situation, acknowledging that it may not be ideal and that fans can be quite critical. He mentioned that he doesn’t want to speak on behalf of Hemsworth, but based on his understanding, it seems like Hemsworth is aiming to inject some heartfelt elements into the project. I’m eagerly anticipating his performance after all that training. And he’s truly a delightful individual. I hope people give him a fair chance, you know?

It’s unclear why Henry Cavill decided to depart from the show, despite his previous commitment to stay for the entire seven seasons if needed. Netflix has announced that The Witcher has been renewed for a fifth season, which will be the final installment of the series.

 

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Gaming

CEO of Helldivers 2 commends the remarkable determination displayed by the community during the intense Sony showdown

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The experience for Helldivers 2 players has been quite turbulent lately, and we’re referring to a community that is accustomed to leaping from great heights into the most intense and terrifying battlegrounds imaginable. In the midst of a highly debated PSN account requirement for PC players and facing intense backlash, Sony has made a surprising reversal, yielding to the overwhelming force of public opinion. The CEO of Arrowhead, Johan Pilestedt, has displayed an intriguing attitude throughout this challenging period. He has shown remarkable composure, actively engaging with community managers and experiencing the difficulties they face firsthand.

Pilestedt expressed his admiration for the community’s determination and praised their ability to work together on Twitter, following Sony’s reversal. He sarcastically expressed gratitude towards Sony for their “prompt and efficient choice to make PSN linking optional.”

In the future, Pilestedt expressed his vision of working closely with PlayStation and the players to establish a groundbreaking benchmark for the concept of a live game. The aim is to foster a strong partnership between developers and the community, ultimately resulting in an unparalleled gaming experience.

What are your thoughts on the commotion surrounding Helldivers 2? What are your thoughts on Sony’s involvement, Pilestedt’s attitude, and the community’s reaction? Feel free to share your thoughts in the comments section below.

 

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