Netflix increases subscription prices in Italy and Spain
Netflix announced a price increase for subscriptions in Italy and Spain after a successful quarter. The new prices will come into effect starting today for new subscribers and in the coming days for existing subscribers. The company is focusing on profitability and content diversification, such as video games and live sports, to continue growing
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Key points
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Analysts had predicted this in recent weeks, also in the wake of some increases already made in other parts of the world. For Italy and Spain, the prediction has now become reality. Netflix is raising the prices of its subscriptions in both countries, starting today, Friday 18 October.
Awakening without good news, then, for the Italian subscribers of the platform that in the Italian night unveiled the numbers of the third quarter: among the most profitable if not the most profitable in history. Of course, on the other hand, the platform, also in its letter to investors and in the call with analysts, mentioned the increased offer in terms of content. This will now be followed by price adjustments in Italy and Spain.
Results exceeded expectations
.As for the numbers The Los Gatos giant ended the quarter with 282.7 million global subscribers, up from 247.15 million a year earlier. And it added 5.07 million subscribers, compared to 8.76 million net new subscribers in Q3 2023. Certainly not a positive indication for Netflix, but tempered first and foremost by the fact that the results exceeded Wall Street's expectations for key metrics, from subscriber growth itself to revenue, profitability and free cash flow. Net income rose 41% to $2.36 billion, (the company predicted a drop in the fourth quarter to $1.85 billion) bringing total profit to $6.8 billion (on $28.8 billion in revenues).
Focus on profitability
.Expanding the range of plans available to users helped (as in the case of the launch of plans with advertising). Aiming at profitability more than at expanding the number of subscribers - whose figures, in fact, from next year will no longer be disclosed by Netflix - has shifted the focus. Partly also on prices. And so, after recently raising tariffs in Japan and parts of Europe, the Middle East and Africa, the video-streaming bigwig has announced increases in Italy and Spain.
Increases of one to two euros per month
.In detail in Italy it will now start at EUR 6.99, with reference to the basic plan with advertising. Until today it cost 5.49 euros. For the Standard plan it goes from 12.99 euro to 13.99 euro, and for the most valuable plan, the Premium, a two euro increase: from 17.99 euro to 19.99 euro per month.
