## Netflix Sees $10.5 Billion Revenue Surge After Price Hike
Netflix’s latest earnings report reveals a significant revenue boost following recent price increases. The streaming giant announced a Q1 revenue of $10.5 billion, a 13% increase compared to the same period last year, according to their shareholder letter released on Thursday. This growth is attributed to the price hikes implemented across most of its subscription plans in January.
The company’s net income also saw a considerable jump, reaching $2.9 billion. Netflix anticipates continued growth in the coming months, citing “the full quarter benefit from recent price changes and continued growth in membership and advertising revenue.”
In January, Netflix raised the price of its premium plan to $24.99 per month. They also increased the cost of the “Extra Member” option, designed to curb password sharing, to $8.99 per month. While these increases have already been implemented in the US, UK, and Argentina, Netflix plans to extend them to France as well.
Interestingly, this quarter marks a shift in Netflix’s reporting strategy. The company has decided to move away from reporting specific subscriber gains or losses each quarter, opting instead to announce only “major subscriber milestones.” This change reflects the increasing importance of diverse revenue streams like advertising. The last reported subscriber count, revealed in January, stood at a staggering 300 million globally.
During Thursday’s earnings call, co-CEO Greg Peters indicated that Netflix is focused on long-term growth and profitability, suggesting the company is confident in its current strategy and its ability to navigate the evolving streaming landscape.