Netflix shares rose 13% after the publication of earnings – Kommersant
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In the third quarter, revenue from the streaming video service Netflix increased by 7.6%, to $8.5 billion. Net profit grew by 19%, amounting to $1.7 billion. The number of service subscribers increased during this period by 9 million, reaching 247 million. Analysts expected an increase in the number of subscribers by 6 million. Shares Netflix rose almost 13% after the publication of earnings.
The company also announced an increase in subscription prices in the US, with the premium subscription price increasing by $3 to $22.99 and the cheapest ad-free subscription increasing by $2 to $11.99. At the same time, the price for the tariff plan with advertising remained unchanged – $6.99. Prices will also increase slightly in the UK and France. Previously American media wrote Netflix plans to raise prices after Hollywood screenwriters negotiated higher fees and commissions. Other services are also increasing their prices. In September, Warner Bros Discovery increased the monthly fee for its Discovery+ streaming service.
According to Forrester Research director Mike Proulx, “price increases may boost streaming revenue in the short term” but may not support sustainable growth in the long term. “Consumers have expectations: great content at a reasonable price. Not only are consumers not benefiting further from recent and planned price increases, but they may be getting less, says Mr Proulx.
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