In a surprising move, Netflix announced price increases for select streaming plans in the United States, Britain, and France, leading to a 13% surge in its shares. Despite ongoing strikes in Hollywood affecting a significant portion of U.S. production, the streaming giant managed to exceed expectations with nearly 9 million new global subscribers in the third quarter, surpassing Wall Street predictions. This strong performance showcased Netflix’s resilience and ability to thrive by producing content overseas, contributing to the bulk of its new sign-ups.
The company attributed its success to globally popular content like “One Piece,” a live-action adaptation of a renowned Japanese manga series, and the licensing of shows like “Suits” and HBO’s “Band of Brothers.” Netflix’s co-CEO, Ted Sarandos, emphasized the importance of their extensive and diverse programming selection in navigating challenging situations, such as the COVID pandemic and ongoing strikes in the industry.
Despite the ongoing labor tensions, Netflix’s third-quarter gains represented its strongest quarterly growth since the early days of the COVID-19 pandemic. The price hikes were welcomed by investors, pushing Netflix’s shares to $390.80 in extended trading. As the company continues to expand and explore opportunities in advertising and cracking down on password sharing, it remains a dominant force in the streaming landscape, with over 247 million global subscribers, the majority of which now reside outside the United States. Netflix remains committed to its strategy and anticipates further growth, even as it adjusts its content spending projections due to the strikes in Hollywood.
