Netflix revenue rises to $10.5 billion following price hike
- Netflix’s revenue has increased by 13% to $10.5 billion in the first quarter following a price hike, surpassing the same period last year.
- The company’s net income also grew to $2.9 billion, with expectations of further growth in membership and advertising revenue in the coming months.
- Netflix raised prices across most of its plans in January, including its premium plan ($24.99/month) and Extra Member option ($8.99/month), which aims to combat password sharing.
- This is the first quarter that Netflix has not disclosed subscriber growth or losses, instead focusing on “major subscriber milestones” as other revenue streams continue to grow.
- The company currently has 300 million global subscribers and plans to roll out price increases in France, following previous implementations in the US, UK, and Argentina.
Netflix said in its first quarter earnings report on Thursday that revenue reached $10.5 billion in the months since it raised prices. That’s a 13 percent increase over the same time last year.
The streaming service’s net income also grew to $2.9 billion, and the company says it expects more growth in the coming months when it sees “the full quarter benefit from recent price changes and continued growth in membership and advertising revenue.”
Netflix raised the prices across most of its plans in January, with its premium plan hitting $24.99 per month. It also increased the price of its Extra Member option – its solution to password sharing – to $8.99 per month. Though Netflix already rolled out the increase in the US, UK, and Argentina, the streamer now plans to do the same in France.
This is the first quarter that Netflix didn’t reveal how many subscribers it gained or lost. It decided to only report “major subscriber milestones” last year, as other streams of revenue continue to grow, like advertising, continue to grow. Netflix last reported having 300 million global subscribers in January.
During an earnings call on Thursday, Netflix co-CEO Greg Peters sai …
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