Netflix Inc (NASDAQ:NFLX) is reportedly set to announce a hike to its prices when it posts quarterly results later this week, after seeing a boost in subscriber numbers following a crackdown on password sharing.
As the streaming giant unveils third-quarter earnings on Wednesday, Reuters reported that Netflix could lay out plans to bump up the prices of its ad-free subscription plans.
Some six million extra people are estimated to have signed up to Netflix in the third quarter, after the firm began blocking those from using accounts registered outside of their own homes earlier this year.
According the Reuters, the majority of these have signed up to ad-free accounts, which cost £10.99 a month, compared to a basic subscription of £4.99.
As a result, Netflix could bump up prices of the former to encourage more users toward cheaper subscriptions in a bid to gain more revenue from advertising.
"Using these tactics, Netflix will likely double its ad-supported viewership next year," Insider Intelligence analyst Ross Benes commented.
Netflix has so far avoided raising prices this year, unlike rivals such as The Walt Disney Company (NYSE:DIS).