Netflix subscribers, be ready to pay more
What's the story
Netflix has hinted at potential future price hikes for its subscription services. The company's third-quarter earnings report revealed a focus on improving monetization while ensuring subscribers feel they are getting enough value to justify occasional price increases. However, no immediate changes have been announced and there is no timeline for when these changes might take effect.
Strategic shift
Jefferies's estimate of viewing-time drop
The streaming giant's strategy comes as it faces increasing competition and concerns over viewing time.
Jefferies recently estimated that Netflix members watched an average of 49 hours per month in H1 2025, down from 66 hours in H1 2023.
The New York Times also reported a decline, with Netflix accounting for only 7.8% of US television viewing in July, down from last year's figure of 8.8%.
Market response
International titles driving growth for Netflix
Netflix's co-CEO Ted Sarandos has said that international titles are helping the company grow its business and attract viewers.
He admitted that while the US market is performing well, it isn't growing as fast as the company would like.
This comes after Netflix recently laid off around 1,000 employees, or roughly 6% of its workforce, in its biggest job cut since 2022.
Revenue growth
Financial performance and ad-supported plan success
Netflix's ad-supported plan generated $1.5 billion last year, with plans to expand the tier into 15 more countries in 2027.
The company's third-quarter revenue was $12.9 billion, a 12% increase year-on-year (YoY).
This comes as Netflix's aims to attract more advertisers and broaden its content offerings amid intensifying competition for viewers' attention.