Netflix raises prices, adds 8.8 million new subscribers

In its latest quarterly earnings report, Netflix has announced the success of its global initiative to combat password sharing and unveiled plans to increase subscription rates.
Over the past three months, the streaming giant added 8.8 million new subscribers, a significant leap beyond expectations and a substantial increase from the 2.4 million added during the same quarter in the previous year.
In the US, the cost of a basic Netflix subscription will rise by $2, reaching $11.99, while premium subscriptions will experience a $3 increase, reaching $22.99. Across the pond in the United Kingdom, the price of the basic subscription will climb by £1 to reach £7.99, and premium memberships will see a £2 hike to reach £17.99.
In Australia, prices will remain constant, but the basic subscription tier, previously priced at $10.99, will no longer be available to new or returning subscribers starting next week.
The basic tier will also be phased out for new subscribers in Germany, Spain, Japan, Mexico, and Brazil, commencing next week. It has already been discontinued in the United States, the United Kingdom, Italy, and Canada. Netflix has taken steps to curtail the practice of password sharing during the summer months. The company reported that the number of cancellations stemming from this initiative was lower than originally expected.
Netflix has introduced an ad-supported subscription tier a year ago, which now constitutes 30% of new subscribers. However, the company acknowledged that building this service "from the ground up" would require some time.
Netflix reported revenues of $8.54 billion, in line with expectations. Net profit surged by 20%, reaching $1.68 billion in the third quarter, exceeding its own forecasts. This strong financial performance resulted in an over 11% increase in Netflix's share price during after-hours trading.