Netflix exceeded expectations by gaining almost 9 million additional paid subscribers globally in the third quarter.
According to the streamer’s latest results, it ended Q3 with a total of 247.15 million, or 8.76 million more than three months earlier. Year-on-year subscriber growth was 10.8% and it expects Q4 growth to be similar to that in the third quarter. Netflix’s revenues in Q3 amounted to $8,542 million, or 7.8% more than a year earlier, and its net income was $1,677 million, a figure it expects to fall to $956 million in Q4.
Also on the financial side, Netflix announced some price increases in the US, UK and France that came into effect on October 18. In the US, its ads ($6.99) and Standard plans ($15.49) have stayed the same, while Basic now costs $11.99 and Premium $22.99. Meanwhile in the UK and France, its pricing for ads/Basic/Standard/Premium are £4.99/£7.99/£10.99/£17.99 and €5.99/€10.99/ €13.49/€19.99, respectively. Like in the US, its ads and Standard plans in UK and France have remained unchanged.
Netflix says that in Q3 its ads membership increased nearly 70% quarter-over-quarter and now accounts for around 30% of all new sign-ups in its 12 ads countries. This growth has been driven by improvements to its offering — including two streams, higher quality video and a programming slate that’s now essentially on par with its other plans — as well as the phasing out of its Basic plan for new and re-joining members in the US, the UK, Italy and Canada. This change boosted adoption of its ads and Standard plans and it will be making the same change in Germany, Spain, Japan, Mexico, Australia and Brazil next week. From next month it will be introducing downloads, while also working to include the ads plan in device and ISP partner bundles.
Commenting on the writers’ and actors’ strikes in the US, Netflix says the last six months have been “challenging for our industry”.
It adds that “While we have reached an agreement with the WGA, negotiations with SAG-AFTRA are ongoing. We’re committed to resolving the remaining issues as quickly as possible so everyone can return to work making movies and TV shows that audiences will love”.
Significantly, over 70% of its subscribers are now outside the US and it produces or co-produces in over 50 countries and languages.
