Netflix also hiked prices in October, increasing its standard plan by a dollar to $ 14 a month. The premium tier has been increased by an additional $ 2, which now costs $ 18. The company typically increases its fees roughly every 18 months. Attempts are also being made to curb password sharing, which has long been the practice.
In business today
April 20, 2021 at 1:25 p.m. ET
During the same period when the pandemic was underway, the company had a record 15.7 million subscribers last year.
When much of the world was locked down, people turned to screens to pass the hours. Netflix saw a surge in new signups, creating a record year of nearly 37 million additional customers. The company is unlikely to repeat this feat in 2021 as restaurants, shops, theaters and sports stadiums across the country reach full capacity.
But Netflix is an international business. Most of its revenue now comes from overseas and has based its future growth on emerging markets like India and Latin America. These regions have had a surge in coronavirus cases recently, which has resulted in new lockdowns. Most of the world, including Europe, didn’t vaccinate its citizens as quickly as the United States.
Netflix still spends a lot. US $ 465 million was spent to purchase two sequels to the hit unit “Knives Out,” a price 50 percent above the gross proceeds of the first film. It’s also ten times the cost of producing the film. Hollywood lit up with chatter. Did Netflix Pay Too Much?
The director of the film, Rian Johnson, came up with the idea for the film, and he and his production partner control the rights. The lucrative deal is in line with Netflix’s expensive advertising for Hollywood creators. There are nine-digit agreements with prolific television producers such as Ms. Rhimes and Ryan Murphy, and actor-producer Adam Sandler. Mr Johnson could join their ranks by creating additional series and films for the company.
Despite Netflix’s endeavors to own content, Netflix recently signed a distribution agreement with Sony Pictures Entertainment, the last major Hollywood studio not tied to a streaming business. Netflix will have rights to a number of Marvel franchises, including Sony-controlled Spider-Man and several offshoots based on the character.