Netflix Q4 earnings: How password crackdown helped streaming giant to boost subscriptions; prices likely to go up
Netflix said that they are well on their path to growth and may soon consider increasing the prices of their plans. The company was holding the price rise to check the impact of its password sharing crackdown, but after the Q4 results, the subscription rates are expected to go up. "We largely put price increases on hold as we rolled out paid sharing.
Now that we're through that, we're able to resume our standard approach," co-chief executive Greg Peters said as per BBC. Netflix said that most of its users chose the cheapest plan and didn't care much about the advertisements, the company rolled out in 12 countries including major markets like US and UK. The OTT platform said that plan with the advertisements accounted for 40% of all subscriptions.
The cheaper plans by Netflix came as the company found itself in middle of serious crisis during 2022 when the subscriber rate started declining and the subsequently profits took a plunge. The rejig in the plans and crackdown on password sharing were some course correction measures taken by the company. Ted Sarandos, the co-chief executive of Netflix told Business Insider that the company is "thrilled" with the engagement trends.
"Our engagement is a bit impacted by our paid sharing. Think about it like fewer households using the same account," Sarandos said. "So as those folks spin off and get their own accounts, and we win them over with our programming, that will normalize and continue to grow.
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