Netflix is ​​starting to raise prices in some countries as growth spurred by a crackdown on password sharing begins to fade.

The film and TV streaming giant said it had already increased subscription fees in Japan and parts of Europe as well as the Middle East and Africa over the past month.

Changes in Italy and Spain are currently rolling out.

In its latest results, Netflix announced that it added 5.1 million subscribers between July and September – a higher-than-expected gain but the smallest gain in more than a year.

The company is under pressure to show investors what will fuel its growth in the coming years, as its already massive reach makes it harder to find new subscribers.

The last time Netflix saw signs of a slowdown, in 2022, it initiated measures to stop password sharing and announced it would offer a new streaming option with ads.

The crackdown sparked a new wave of growth.

The firm has added more than 45 million new members since last year and has 282 million subscribers worldwide.

Analysts also expect ads to eventually become big business for Netflix.

For now, however, Netflix said it was still “in its early stages” and cautioned that it did not expect it to start generating growth until next year, despite the fact that many subscribers opted for the ad-supported plan.

The plan, which is the company’s cheapest option, accounted for 50% of new signups in countries where it is offered in the most recent quarter, Netflix said.

Even without the advertising boost, Netflix said its revenue in the July-September period was up 15% from the same period last year, to more than $9.8 billion ( £7.5 billion).

Profit also increased from $1.6 billion in the same period last year to $2.3 billion.

Netflix last raised its prices in the UK and US in 2023, but this only affected certain plans. It has left the price of its popular “standard plan” unchanged without advertising since 2022.

In the past, the company has sometimes experimented with tariffs in smaller countries before making changes in major markets, like the United States and the United Kingdom.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said Netflix’s strong financial position allows the company to continue spending money to achieve new successes – key if it hopes to raise prices without backlash .

“It’s inherently a volatile market, where consumers are happy to trade in their streamers if they don’t think they’ll make a profit from them,” he said.

“Adding new content is key to this, especially in areas like sporting events, and could give Netflix the edge it needs to raise prices and keep customers coming back for more .”

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One of Netflix’s biggest hits was Baby Reindeer, a drama created by and starring Scottish comedian Richard Gadd.

The controversial series won four Emmy Awards last month.