Netflix raises prices as it adds 9 million subscribers, shares rise
By Lisa Richwine and Dawn Chmielewski
LOS ANGELES (Reuters) -Netflix increased subscription prices for some of its streaming plans in the United States, Britain and France on Wednesday as it shattered new customer expectations, and its shares jumped 13%.
The company picked up almost 9 million subscribers around the globe, surpassing the 6 million expected by Wall Street analysts, according to LSEG. Netflix (NASDAQ:NFLX) said it expected a similar number of additions in the current quarter.
The company credited the recent gains to its crackdown on password-sharing and a steady flow of new programming, such as the romance movie «Love at First Sight» and Japanese series «One Piece.»
The customer gains represented the strongest quarterly uptick since the second quarter of 2020, when lockdowns early in the global pandemic led to a surge in streaming subscriptions.
Netflix increased the U.S. price of its premium ad-free plan by $3 per month to $22.99. The cost for premium rose by 2 pounds to 17.99 pounds in Britain and by 2 Euros to 19.99 Euros in France.
Investors welcomed the news, sending Netflix shares climbing to $390.80 in extended trading from a close at $346.19.
The streaming video pioneer has been searching for ways to boost revenue as it nears market saturation in the United States and faces competition from Walt Disney (NYSE:DIS), Warner Bros Discovery (NASDAQ:WBD) and others.
PP Foresight analyst Paolo Pescatore said the third-quarter growth at Netflix was a testament to its password crackdown and the opportunities for future growth as it moves into advertising.
«It is firing on all cylinders, with recent efforts all heading in the right direction,» he said.
GLOBAL GAINS
The price hikes were announced in an
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