Netflix has announced that it will be increasing its prices for certain subscription tiers in the United States, United Kingdom, and France. The premium ad-free plan in the US will now cost $22.99 per month, while the basic plan will be $11.99 per month. However, other plans will remain at their current prices. This price increase comes after the company reported a 9% year-over-year increase in average paid memberships and added 8.8 million subscribers in the last quarter. Netflix attributes some of this growth to its crackdown on password-sharing, which has resulted in more customers converting into paying subscribers. Additionally, the adoption of its advertising tier plans has increased by nearly 70%. The company's revenue for the last quarter was $8.54 billion, and its stock rose by 12% in after-hours trading. Netflix also mentioned the challenges it has faced due to strikes by the writers' guild and actors' guild, with negotiations between SAG-AFTRA and the studios being suspended. The company last raised its prices in January 2022, but its competitors, including Disney+ and Max, have raised their prices since then. Raising prices is one way for streaming services to address the increasing demands and costs associated with producing TV shows and movies. Netflix, being one of the few profitable streaming services, is under pressure to continue growing its earnings and has been promoting its lower-priced ad tier as a solution.
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