Netflix has released its Q3 report outlining a three-pronged approach to monetization and growth, focusing on paid sharing, pricing adjustments, and the expansion of its advertising business. The streaming giant aims to increase engagement through content creation while optimizing various revenue streams.
Netflix reported robust membership growth over the past two quarters and a positive revenue forecast for Q4 2023. The company has successfully implemented paid sharing across all operating regions. “We’re revenue positive in every region,” Netflix stated, adding that it plans to continue refining its approach to convert more borrower households into full-paying memberships.
Netflix has also announced price changes in the U.S., U.K., and France. In the U.S., the Basic plan will now cost $11.99 USD, and the Premium plan $22.99 USD ($31.52 CAD roughly), while the Ads ($6.99 USD) and Standard ($15.49 USD) plans will remain the same. Similar pricing structures will be applied in the U.K. and France, with no changes to their Ads and Standard plans.
“Our starting price is extremely competitive,” Netflix noted, citing the $6.99 per month cost in the U.S. as less than the average price of a single movie ticket.
Less than a year since its launch, Netflix’s advertising tier is showing strong user engagement. While acknowledging that building a new business takes time, the company remains optimistic about the long-term potential of its ad revenue. “Ad dollars follow eyeballs, and more TV viewing is shifting from linear to streaming,” Netflix emphasized, stating its leadership position in streaming engagement.
Netflix’s strategies aim to meet a diverse range of customer needs while delivering increased value to its members. “As we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix concluded in its Q3 report.
Below is current Netflix pricing in Canada:
Price hikes in the U.S. mean similar increases might be coming again in Canada.
Netflix previously increased prices in Canada back in January 2022. A report earlier this month said Netflix is eyeing price increases in Canada following the Hollywood writers strike.
If Netflix decides to increase prices in Canada–are you sticking around?
