Netflix’s password-sharing crackdown—which the company more affectionately calls “paid sharing,” “the right nudge at the right time”—not only paid off immediately after the company implemented it last May, but even more so in the months that followed.
The streaming service increased its subscriber base by about 13% in the fourth quarter of 2023 from the year-ago period. That’s after the company already increased memberships by a sizable 11% in the third quarter. The company only expects paid sharing to bring more and more users going forward.
“That [paid sharing model] will continue to improve our growth for years ahead, not just 2024,” Netflix co-CEO Gregory Peters said in an earnings presentation Tuesday (Jan. 24) afternoon.
Not to mention, the executive noted that subscription price hikes later in the year in the US, UK, and France went “better [than] forecasted.” The company said in October that it was raising prices by $2 to $23 per month in the US for its premium plans. Its standard, ad-free plan is still $15.50.
“And we’ll continue to then monitor other countries and try and assess when we’ve delivered enough additional entertainment value, we look at engagement retention acquisition as a signal there so that we can go back to members and ask them to pay a bit more to keep that positive flywheel going,” said Peters.
Subscription services are getting pricier all around
Paramount+: The platform’s monthly cost to customers climbed to $6 for ad-free content. Its bundle including Showtime movies and shows jumped $2 to $12 per month.
Max: The cost of the streaming service formerly known as HBO Max rose $1 to $16 per month at the beginning of 2023.
AppleTV+: The streaming platform owned by tech giant Apple raised prices from $7 to $10 in October.
Amazon Prime Video: Amazon said in September its TV and movie platform, Prime Video, will cost an extra $3 for ad-free subscribers, putting it at about $18 per month. The changes will kick in Jan. 29.
Disney+: In October, the price of an ad-free plan rose nearly 30% to $14 monthly. The streaming service began a password-sharing crackdown a month later.
Hulu: Membership plans for zero-ad shows and movies increased 20% to $18 per month.
Discovery+: Subscriptions for ad-free content on the Warner Bros.-owned platform rose almost 30% to $9.