Netflix Raises Subscription Fees as Password Boost Fades 

Netflix is raising prices in some countries as growth from its crackdown on password sharing fades.

The film and TV streaming company said it had already raised subscription costs in Japan, regions of Europe, the Middle East, and Africa in the last month. Changes in Italy and Spain are now being implemented.

Netflix reported that it added 5.1 million customers between July and September, above expectations but with the smallest gain in more than a year.

The company is under pressure to show investors what will drive growth in the coming years, as its already massive reach makes acquiring new subscribers more difficult.

Netflix last witnessed signs of a slowdown in 2022, when it implemented efforts to prevent password sharing and announced the launch of a new streaming option with commercials.

Since last year, the company has added over 45 million new users, and it now has 282 million subscribers around the world.

For the time being, however, Netflix has stated that it is still in the “early days” and that it does not anticipate to begin driving growth until next year, despite the fact that many customers have chosen the ad-supported plan.

In the most recent quarter, the plan, which is the company’s least expensive option, accounted for 50% of new sign-ups in areas where it is available, according to Netflix.

Even without advertising, Netflix reported a 15% increase in revenue from July to September compared to the same time last year, totalling more than $9.8 billion. Profit also increased from $1.6 billion in the same period last year to $2.3 billion.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said Netflix’s strong financial position put the firm in a position to keep spending money to make new hits—the key if it hopes to raise prices without backlash.