Netflix, $NFLX, to increase the price for its premium service by 15% to $22.99 per month.

exceeded expectations by adding 8.76 million global subscribers in the quarter, surpassing Wall Street's projection of 5.49 million, as reported by estimates from Street Account. This marks the highest quarterly net addition for the company since Q2 2020, when it gained 10.1 million subscribers during the peak of COVID restrictions.

Key Results:

Earnings: $3.73 per share, surpassing the expected $3.49 per share (LSEG)
Revenue: $8.54 billion, in line with expectations (LSEG)
Total memberships: 247.15 million, exceeding the anticipated 243.88 million (Street Account)

Netflix disclosed that its ad-supported membership grew by nearly 70% quarter-over-quarter, without specifying the percentage of its overall user base subscribed to this tier.

These results underscore Netflix's continued dominance in the streaming landscape, with competitors striving for profitability. The company's pricing power is evident as it maintains the ad tier at $6.99 per month in the U.S., while introducing price hikes for its basic and premium services. The basic plan now costs $11.99 (up from $9.99), and the premium plan is set at $22.99 per month (up from $19.99), while the standard plan remains at $15.49 per month.

These price adjustments align with Netflix's efforts to enhance profitability and navigate increased production costs. In the context of its recent agreement with Hollywood's writers, Netflix, along with other members of the Alliance of Motion Picture and Television Producers, has committed to higher wages and streaming-based monetary benefits. While negotiations with striking actors are ongoing, it is anticipated that content creation costs will rise upon finalizing a new contract with the AMPTP.