Netflix has signalled that subscription prices could increase in the future, although the streaming platform has not announced any price hike or specified when one might happen. In its third-quarter earnings report released on Tuesday, the company said it aims to improve monetisation while ensuring subscribers receive enough value to justify occasional increases in fees.
Netflix has identified stronger monetisation, improved entertainment offerings and the adoption of new technology as its key priorities. However, it has not revealed how subscription charges might change or how much customers could eventually be asked to pay.
The company is also looking to attract more advertisers and broaden its content library. Its strategy includes investing in original films and series, live events and programming from external providers as competition for audiences intensifies. For subscribers, higher prices remain a possibility rather than a confirmed decision. Netflix has said future increases would depend on the value it delivers to members but has provided no specific pricing details.
The company's plans come amid concerns about declining viewing time among its subscribers. According to estimates by Jefferies cited by Reuters, Netflix members watched an average of 49 hours of content per month during the first half of 2025, compared with 66 hours in the corresponding period of 2023. The New York Times also reported that Netflix accounted for 7.8 per cent of television viewing in the US in July, down from 8.8 per cent a year earlier.
Netflix co-CEO Ted Sarandos said international content was helping the company attract audiences and expand its business. He noted that the US market was also performing well, although its growth was slower than the company had hoped.
Advertising represents another potential avenue for expansion. Netflix's advertising-supported subscription plan generated $1.5 billion last year, and the company plans to launch the tier in 15 more countries in 2027. Its third-quarter revenue reached $12.9 billion, marking a 12 per cent increase year-on-year.
Netflix's upcoming content initiatives include NFL games, a preview of Grand Theft Auto VI and a partnership with French broadcaster TF1. The company is also competing with YouTube and other streaming platforms for viewers.
Netflix lays off around 1,000 employees amid competition
Netflix's push to increase revenue follows a decision to lay off approximately 1,000 employees, representing around 6 per cent of its workforce. Reuters described the move as the company's largest round of job cuts since 2022.
In an internal memo sent on Wednesday, co-CEOs Greg Peters and Ted Sarandos said most of the affected positions were in the product, technology, legal and human resources departments. They added that Netflix remained on course to achieve its full-year financial targets.
The layoffs come as the streaming giant faces mounting pressure to sustain growth and keep audiences engaged while competing with platforms such as YouTube and TikTok, which provide free, user-generated content. Netflix employed approximately 16,000 people at the end of last year.
The company has also been exploring ways to generate revenue beyond subscriptions, including advertising, live programming and gaming. Its latest strategy indicates that extracting more revenue from its existing platform will play a central role in its efforts to sustain business growth.
