Netflix raised subscription prices for some of its streaming plans in the United States, Britain and France on Wednesday, a move to boost revenue in a competitive streaming market.
Shares of Netflix rose nearly seven per cent in after-hours trading to $369.89.
The premium ad-free plan, which allows for four streams at the same time, increased by $3 per month to $22.99 in the United States. The one-stream basic U.S. plan rose by $2 per month to $11.99.
The price hikes were announced in Netflix’s third quarter earnings report, which showed the company added 9 million new customers worldwide and posted revenue of $8.542 billion, in line with analyst forecasts. Earnings-per-share came in at $3.73. Wall Street had expected Netflix to pick up about 6 million new customers.
Netflix projected fourth quarter revenue of $8.69 billion fell slightly below the $8.77 billion forecast of analysts polled by LSEG.
The company has been searching for ways to increase revenue as it nears market saturation in the United States and faces competition from Walt Disney, Warner Bros Discovery and others.
In Britain, the basic plan price rose by 1 pound to 7.99 pounds. In France, basic increased to by 2 Euros to 10.99 Euros.
The company also has launched a cheaper tier with advertising and started asking password borrowers to pay in its bid for growth.
Executives have said they are still in the early stages of building an ad-supported business. Netflix replaced its head of advertising earlier this month.
Media companies like Netflix have been grappling with labor tensions in Hollywood. While film and television actors have ratified a new contract, actors remain on strike.
The work stoppages shut down Netflix productions such as “Stranger Things.” The company argues, however, that it has navigated the strikes better than competitors because many of its productions take place outside the United States.
Netflix said it continued to dominate viewership even with the strikes with shows such as “One Piece.” Netflix programming accounted for 8% of television screen time, second only to YouTube, the company said, citing Nielsen data.
Some analysts recently lowered their price targets for Netflix. The median target has fallen to $460 from $495 a month ago, according to Refinitiv.
(Reporting by Lisa Richwine; Editing by Aurora Ellis)
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