Netflix raises prices in Spain despite having won a 53% more until September and exceed the 282 million of subscribers. The new rates will come into effect starting this Friday.
The audiovisual content production and distribution company in streaming recorded a net profit of 6,843 million dollars (6,310 million euros) in the first nine months of 2024, which represents an advance of 53% compared to the result recorded in the same period of the previous year, as announced by the multinational.
“We are working to improve our monetization by perfecting our plans and prices,” said the Los Gatos (USA) company in the presentation of its accounts.
“Earlier this month, we increased prices in some countries in EMEA (Europe, Middle East and Africa) plus Japan and, starting tomorrow (for today), we will increase prices in Spain and Italy,” the company announced.
Thus, as of this Friday, Netflix is now reporting the new cost of the different subscription plans it offers in Spain: the standard plan with ads goes from 5.49 euros to 6.99 euros per month and 12.99 euros to 13.99 euros monthly in the case of the standard plan without advertising breaks. The premium plan rate increases by 17.99 euros to 19.99 euros per month.
In the press conference after the publication of its results, Gregory K. Petersco-CEO of Netflix, has stressed that the company’s approach to pricing has not changed and has defended that the company “occasionally asks members to pay a little more in order to invest that value in the future.”
Gregory K. Peters: “I would say that those changes we have made have gone well. The results have been in line with expectations”
“We did it in Europe in several countries. We did it in Scandinavia. We did it in Japan. I would say that those changes we have made have gone well. The results have been in line with expectations,” he indicated, noting that now the company He was also doing it in Spain and Italy.
“We will determine where and when we think it is appropriate to ask those members to pay a little more as well,” he explained before highlighting the opportunity for long-term monetization as long as the variety and quality of programming can continue to be improved, as well as expand the offer to new areas, including sports such as the NFL or video games. “So if we do a good job there, we think we can continue to maintain that monetization cycle in the long term,” he concluded.
Results
The platform of streaming closed the third quarter of the year with a net profit of 2,364 million dollars (2,180 million euros), a 41% above the profits recorded between July and September of last year, with a 15% growth of billing, up to 9,825 million dollars (9,060 million euros).
Specifically, Netflix’s revenue in the third quarter increased by 15.7% in the United States and Canada, until 4,322 million dollars (3,985 million euros), as well as a 16.3% in the EMEA region, up to 3,133 million dollars (2,889 million euros) and a 8.6% in Latin America, with 1,241 million dollars (1,144 million euros). For its part, revenues in Asia Pacific added 1,128 million dollars (1,040 million euros), a 19% more.
Likewise, in the third quarter, the company managed to increase its number of subscribers to 282.72 millionwith a growth of 5.07 million paying users compared to the previous quarter and 35.57 million in a year.
Thus, in the first nine months of the year, Netflix obtained a net profit of 6,843 million dollars (6,310 million euros), 53% more, as well as an increase of 15.5% in income, up to 28,754 million dollars (26,515 million euros).
Looking ahead to the fourth quarter of 2024, Netflix is confident of achieving a turnover of 10,128 million dollars (9,339 million euros), 14.7% higher than that of the same period in 2023, as well as increasing by 97% net profitup to 1,847 million dollars (1,703 million euros).
“We are pleased to have accelerated our growth and, as we approach 2025, we expect to deliver strong revenue and profit growth by enhancing our core offering of series and movies and investing in new growth initiatives such as advertising and games,” he noted. the company.
By 2025, the company expects to reach a revenue figure of between 43,000 and 44,000 million dollars (39,650 and 40,573 million euros), which would represent a growth in 11% to 13% with respect to the income forecast for the whole of 2024 of about 38.9 billion dollars (35.87 billion euros).
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