After successfully cracking down on password sharing, Netflix has defied expectations by adding millions of new subscribers.
In the last three months alone, the streaming service added 5.1 million new subscribers – a million more than investors had expected.
But amid this roaring success – with profits of $2.3bn (£1.76bn) – you might be surprised to learn that price hikes are on the way for many subscribers.
Users in Italy and Spain will see the cost of their subscription plans jump by up to €24 per year.
The news has angered many subscribers, who have flocked to social media to vent their frustrations.
On X, formerly Twitter, one furious commenter wrote: ‘I think I’m going to cancel Netflix for good.
‘It isn’t worth it and they are extremely greedy.’
Netflix is expected to hike its prices again this year, analysts warn, even as the company surpasses expectations by adding 5.1 million new subscribers
Writing in a letter to investors ahead of this Thursday’s quarterly earnings call, Netflix said: ‘Earlier this month, we increased prices in a few countries in EMEA [Europe, the Middle East, and Africa] plus Japan and starting tomorrow we’ll increase prices in Spain and Italy.’
Speaking to the MailOnline, Netflix confirmed that customers in Spain and Italy will now pay €13.99 for the Standard Plan and €19.99 for Premium.
This is up from the previous costs of €12.99 and €17.99, respectively.
The cheapest tier, Standard with Ads, will also increase from €5.49 to €6.99, while the basic subscription will now be €1 more expensive at €13.99 per month.
Netflix also announced plans to phase out the cheaper basic plan in Brazil, as it did in the US and France earlier this year.
This change raised the cost of the cheapest ad-free subscription in the US from $11.99 to $15.49.
As news of these price increases spread, many subscribers around the world took to social media to slam the company as ‘greedy’.
On X, one commenter wrote: ‘Anyone who continues to stick with Netflix if they increase pricing again deserves to get fleeced.’
On X, formerly Twitter, Netflix customers slammed the company’s decision as ‘extremely greedy’ and threatened to cancel their accounts
‘Netflix potentially increasing subscription prices again but cancelling all their good shows… **** them’, wrote another.
Meanwhile, one frustrated customer wrote: ‘I’m giving up on Netflix since they want to charge more for less content and make us watch ads unless we pay double.’
Faced with the possibility of further price increases, some customers even threatened to cancel their accounts altogether.
One commenter said: ‘Having to pay more so they can air more sports will be the reason I end up cancelling them.’
Another added: ‘I’m giving up on Netflix since they want to charge more for less content and make us watch ads unless we pay double.’
And one commenter described Netflix’s strategy as: ‘Put up price, lose members, so put up price, lose members, so put up price, lose members. Repeat till you go broke.’
The company has not said whether it will be increasing prices for more customers, but investors on the call appeared keen for further rises.
During the call, Rich Greenfield, an analyst at research firm LightShed Partners, asked: ‘What is holding you back from raising prices into one of the strongest content periods in recent memory starting in late Q4 this year and into 2025?’
To which Greg Peters, Netflix co-CEO, replied: ‘You saw in the letter that we announced we’re doing it in Spain and Italy as well and of course, we’ll continue to evaluate that.
‘We’ll look at those signals, and we’ll figure out where and when we think it’s appropriate to ask those members to pay a little bit more as well.’
Netflix told MailOnline that price increases are decided specifically for each country so changes in Spain or Italy don’t necessarily mean the UK or US will be affected.
Yet some analysts are concerned that a broader slowdown in Netflix’s business could lead to rising prices for customers.
Although the company added more new customers than expected, this quarter was still the slowest period of growth in over a year.
During the same period last year, Netflix added 8.76 million new subscribers.
Importantly, more than half of the new customers from the last three months opted for the cheapest tier with ads in regions where it was available.
Mike Proulx, an analyst for market research firm Forrester, says: ‘On the surface, Netflix is trending in all the right directions.
Following a crackdown on password sharing and the removal of the cheapest ad-free subscriptions in the US, some Netflix customers said they were now ‘giving up’ on the streaming service
‘A steep decline in net new subscribers is what’s concerning.
‘While there’s room for net subscriber growth internationally, in the U.S. things are getting tapped out.’
The last time new subscriber rates fell this low was back in 2022, when the company added paid subscriptions with ads and began cracking down on password sharing.
So, as subscriber growth slows once again, there is a greater possibility of further price increases to come.