Netflix is set to lay the groundwork for price rises following its crackdown on password-sharing, which likely increased subscribers by approximately 6 million in the third quarter.
In order to reach the more than 100 million users who use its service without subscribing, Netflix, the only profitable major streamer, has restricted password sharing outside of homes rather than raising ad-free fees this year like rivals like Walt Disney.
Analysts predict that Netflix may increase the price of its ad-free alternatives in the upcoming months to move more members to the other tier, where ads help bring in more income per user after the ad plan launched last year had a sluggish start.
According to observers, the majority of Netflix subscribers since the password crackdown have chosen the ad-free packages. The monthly cost of the ad-supported basic plan is $6.99, while the prices for ad-free plans start at $15.49.
According to projections by Visible Alpha, the ad tier will generate around $188.1 million in income during the third quarter that concluded in September, with 2.8 million new subscribers.
