During Netflix’s Q3 earnings call on Monday, CEO Reed Hastings confirmed that users shouldn’t need to worry about a price increase for the streaming service anytime soon.
“We have no plans on price increases outside of inflation adjustments which we do in Brazil, which is the law there. We’ve had a great couple years at these price points and there’s a lot of competition entering the market. What we’re focused on is, ‘how do we increase value to the consumer?’ By having more spectacular shows so that people watch more of Netflix. And over time, that will take care of itself but we don’t want to get overconfident just because we’ve had a good couple years here.”
Earlier this year, Netflix “ungrandfathered” existing users, meaning that the accounts that were paying $9 per month were now paying $10 — the same price as new customers.
Netflix took in a record best of $2.15 billion in revenue on their third quarter as well as adding 3.6 million new subscribers. They attribute much of this performance to the break-out success of Strangers Things and the second season of Narcos.
“Our over-performance against forecast (86.7m total streaming members vs. forecast of 85.5m) was driven primarily by stronger than expected [customer] acquisition due to excitement around Netflix original content. Stranger Things is also notable as it is produced and owned by Netflix, which provides us with more attractive economics and greater business and creative control.”
We can’t wait to see what else Netflix will offer subscribers in the near future.