Sources say Netflix will increase subscription prices in multiple countries and regions

News on the evening of October 16th, Beijing time, streaming video service giant Netflix will release its third-quarter financial report on Thursday. Driven by the restricted account sharing policy, Netflix is ​​expected to increase its number of subscribers by approximately 6 million in the third quarter.

In addition, the industry also generally expects Netflix to increase subscription service prices in the coming months.

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Netflix is ​​the only major streaming company that is currently profitable, but the company did not join this year Disney has joined rivals such as Disney in raising prices on ad-free subscription services. Instead, Netflix is ​​trying to attract the more than 100 million people who use its service but don't yet subscribe by limiting account sharing outside the home.

In this regard, Bernstein analysts said: "Today, Netflix is ​​very similar to a utility company. But the challenge of being labeled a 'utility company' is: for an already mature company, how to Continued growth."

It was reported earlier this month that Netflix would raise prices in multiple markets around the world in the months following the end of the Hollywood actors' strike, with the United States and Canada bearing the brunt. This means that Netflix is ​​likely to announce a price increase at its earnings call this week.

This July, Hollywood suffered its first simultaneous strike by writers and actors since 1960. Last week, the Writers Guild of America (WGA) approved previous deals with a number of major studios, including Netflix. Under the agreement, Netflix, Disney, Hulu and other streaming services will share streaming data with the WGA, allowing writers to see the popularity of their content.

Last year, Netflix launched an ad-supported subscription service, but progress was slow. Analysts say Netflix is ​​expected to raise prices on its ad-free subscription service in the coming months.

Analysts say that after the introduction of a policy banning account sharing, most Netflix viewers chose ad-free subscription services. Netflix is ​​priced at $6.99 per month with ads, while ad-free service starts at $15.49.

Ross Benes, an analyst at research firm Insider Intelligence, said: "Through these strategies, Netflix may double the number of subscribers to its ad-supported service next year. Like its competitors, Netflix will also expand over time." Show more ads to users."

Data analytics platform Visible Alpha estimates that in the third quarter ending in September, the ad-supported subscription service will bring Netflix about $188.1 million in revenue, with subscribers The number will increase by 2.8 million.

LSEG data shows that Wall Street generally expects Netflix to add new subscribers in the third quarter to hit a new high this year.

Wall Street expects Netflix’s third-quarter revenue to reach $8.54 billion, up 7.7% year-over-year, the largest increase in five quarters.

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