Netflix begins raising prices as growth slows

Netflix is starting to raise prices in select countries as its recent growth, driven by a crackdown on password sharing, begins to slow.

The company told investors that it was "working to improve our monetization by refining our plans and pricing" and had already increased prices in Japan and parts of Europe, the Middle East and Africa over the last month, News.Az reports, citing BBC.

In Italy and Spain, the hikes will start this week.

The update came as the streaming giant reported adding 5.1 million subscribers in over the three months that ended in September - the smallest number in more than a year.

Netflix is under pressure to show investors what will power growth in the years ahead, as its already massive reach makes finding new subscribers more difficult.

The last time the company saw signs of slowdown, in 2022, it launched a crackdown on password sharing and said it would offer a new streaming option with advertisements.

The crackdown unleashed a new wave of growth.

The company has added more than 45 million new members since its start last year. It now boasts more than 282 million subscribers around the world.

Analysts also expect advertisements to eventually become big business for Netflix.

Even without a boost from advertising, Netflix said revenue in the July-September period was up 15% compared with the same period last year, to more than $9.8bn (£7.5bn). It also reported profit of more than $2.3bn.

Shares rose about 4% in after hours trade, as subscriber growth came in ahead of analyst expectations.

Netflix last raised prices in the UK and US last year, but those moves only affected certain plans. It has left the price of its popular "standard plan" without adverts untouched since 2022.

News.Az