Netflix increases price of some subscriptions in the UK

Netflix has confirmed it is raising the price of some of its subscription plans in the UK.

The streaming giant said the price of its basic, ad-free subscription would rise from £6.99 a month to £7.99, while its premium subscription would rise from £15.99 to £17.99.

The rise comes as the US firm revealed it had added 8.8 million subscribers between July and September – more than expected – partly driven by its scheme to crack down on password sharing.

Its latest set of numbers were strong, with subscriptions significantly better than the market was expecting and margins growing too

It has introduced an extra fee to enable more than one household to share the same account, which the company said accounted for around 30% of the new sign-ups in countries where it was available.

Netflix said many users appeared to be choosing this option rather than quitting the service.

The streaming firm’s latest financial results showed quarterly revenue was up 7.8% year-on-year to 8.5 billion dollars (£7 billion), with profits at 1.67 billion dollars (£1.38 billion).

Ben Barringer, equity research analyst at Quilter Cheviot, said: “After a difficult couple of years, Netflix’s turnaround is complete, as its recent efforts to crack down on password sharing and subscribers leaving have paid off.

“Its latest set of numbers were strong, with subscriptions significantly better than the market was expecting and margins growing too.

“Indeed, they now guide their sales growth to be back in double digit growth, and there is no reason that they cannot kick on from here and cement its place at the top of the film and TV hierarchy.

“It will be introducing further price rises in the US from 2024, and with a strong content slate lined up, and the fact it is less impacted by the US writer and actor strikes, it is set up for a strong future.”