Netflix raises prices in the US and ends the basic plan in Brazil

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The elimination of the basic plan will also be passed on to users in Germany, Spain, Japan, Mexico and Australia, Netflix announced this Wednesday.

Estadão Conteúdo October 19, 2023 5:49 am Updated 11 hours ago

Netflix announced this Wednesday the 18th that it will end the basic plan for new subscribers to the platform in several countries, including Brazil. The decision is due to come into force next week, a date has not yet been set.

This leaves Netflix in Brazil with only three plan options: Standard with advertising (R$18.90), Standard (R$39.90) and Premium (R$55.90) ​​ only this one has the transmission resolution in 4K, the highest offered by the company, while the other modalities transmit in 1080p. Currently, the basic plan costs R$25.90 per month for 720pixel streaming without ads.

The elimination of the basic plan will also be passed on to users in Germany, Spain, Japan, Mexico and Australia, Netflix announced this Wednesday.

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In July, the same decision was brought forward for American and British subscribers. “This change has increased adoption of our standard and adsupported plans,” the company said in a note to investors this Wednesday.

However, this Wednesday the company announced an increase in subscription prices for users in the US (from $6.99 to $22.99), the UK (£4.99 to £17.99) and France (from €5.99 to €19.99).

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No price adjustment has been announced for Brazilian subscribers at this time.

In addition, also this Wednesday, Netflix announced that it added 8.76 million new subscribers to the streaming service in the third quarter of this year, an increase of 10.8% compared to the period from June to September 2022.

In total, Netflix had 247.15 million users in the quarter ended September. In the same quarter of 2022, this number was 223.09 million.

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The company’s revenue was $8.5 billion, up 10.7% over the same period in 2022. Net income was $1.7 billion, compared to $1.4 billion in the yearago quarter.

In a note to investors, Netflix says that adsupported subscription is one of the company’s growth engines. “The adoption of our advertising plan continues to increase, with adoption of the advertising plan increasing by almost 70% compared to the previous quarter,” he says.

For the fourth quarter, Netflix forecast revenue of $8.7 billion, up 11% year over year.

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