Record profits for the Netflix platform and full of subscribers who, however, will not be happy to know that the cost of the subscription could soon increase. After the crackdown on passwords and the sharing of subscriptions, the streaming platform is preparing for an increase in one/two euros for users of Spain and Italy. The basic plan with advertising will go from 5.49 euros to 6.99, the standard plan will go to 13.99 euros and for the premium you will pay 19.99 euros per month. Subscriptions from the USA and Canada remain unchanged at 84 million users. Among the news announced by Netfilx is that from next year the data relating to subscribers will not be communicated.
“We delivered on our plan to accelerate our business and are excited to end the year on a strong note with a strong fourth quarter,” the company said in a letter to shareholders. Netflix is working to increase advertising revenue, adding that it doesn’t expect advertising to become a growth driver before 2026. Since mid-2022, Netflix has added 57 million subscribers, an average of more than 7 million per month. quarter and with ad-supported subscriptions bouncing from quarter to quarter.
Netflix thus beats analysts’ estimates in the third quarter with 5.1 million new subscribers in the third quarter. The market had expected 4 million new customers. Shares (-2.04%) closed lower in the Wall Street session while rising sharply in the after hours (+3.76%). In the quarter in question, the crime thriller “The Perfect Couple” and the romantic comedy “Nobody Wants This” led the programming.
The earnings per share reached $5.40, above the consensus forecast of $5.12. Revenue reached $9.825 billion, just above the consensus forecast of $9.769 billion. The company said its operating margin reached 30% in the quarter, up from 22% a year earlier.
The streaming giant is targeting live events including sports, a big draw for advertisers. In November, Netflix will stream a fight between the YouTube star Jake Paul e Mike Tyson followed by the first NFL games in December. “Advertisers want to be part of big cultural moments. Compelling live programming will always bring and unite people.”
Help against price increases
“More tariff increases for pay-TV users. After Dazn’s increases started last August, this time it’s Netflix’s turn which has announced new tariff plans for its customers starting today”. This was denounced by Assoutenti, who is protesting against yet another wave of pay-TV price increases and asking for Government intervention. “The Standard plan with advertising now goes from 5.49 euros to 6.99 euros per month, with an increase of +27.3%; the Standard plan without advertising interruptions goes from 12.99 euros to 13.99 euros per month month (+7.7%) while the Premium plan which provides spatial audio and maximum video quality in Ultra HD (4K) and HDR goes from 17.99 euros to 19.99 euros per month (+11.1%). on the three plans it will also be possible to add an “extra” user at a cost of 4.99 euros – explains Assoutenti – “This is a new blow for consumers which will aggravate family spending on television services – states the president Gabriele Melluso – For this reason we loudly ask the government to intervene, bringing the issue of pay-TV price increases to the CNCU for consideration in order to arrive at measures capable of limiting the excessive power of companies that sell packages and subscriptions to users”.