BEIJING, Oct. 16 (Xinhua) — Streaming video service giant Netflix will release its third-quarter earnings report on Thursday, and is expected to increase the number of subscribers by about 6 million in the third quarter, boosted by its policy of restricting account sharing.
Netflix is also widely expected to raise the price of its subscription service in the coming months.
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Netflix is the only major streaming company that is currently profitable, but the company hasn’t joined the ranks of competitors like Disney in raising the price of its ad-free subscription service this year. Instead, Netflix is appealing to the more than 100 million subscribers who use its service but haven’t yet subscribed by limiting account sharing outside of the home.
In response, Bernstein analysts said, “Today, Netflix is very similar to a utility company. But the challenge with being labeled a ‘utility company’ is how to continue to grow for a company that is already mature.”
Earlier this month it was reported that Netflix would be raising prices in several markets around the world in the months following the end of the Hollywood actors’ strike, with the U.S. and Canada taking the brunt of the increase. This means that Netflix is likely to announce the price hike during its earnings meeting this week.
In July, Hollywood suffered its first simultaneous writers’ and actors’ strike since 1960. Last week, the Writers Guild of America (WGA) ratified a previous deal with a number of major studios, including Netflix, under which Netflix, Disney +, Hulu, and a number of other streaming services will share streaming data with the WGA, allowing screenwriters to see how hot the content they’re writing is.
Last year, Netflix launched a subscription service with ads, but progress has been slow. Analysts said they expect Netflix to raise the price of its ad-free subscription service in the coming months.
Analysts said most of Netflix’s viewers opted for an ad-free subscription service after the introduction of a policy banning account sharing. Netflix’s service with ads is priced at $6.99 per month, while the ad-free service starts at $15.49.
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