Netflix’s Password-Sharing Crackdown Reels In Subscribers As It Raises Prices For Its Premium Plan

SAN FRANCISCO (AP) — Netflix has disclosed summertime subscriber gains that surpassed analysts’ projections, signaling the video streaming service’s crackdown on password sharing is converting former freeloaders into paying customers.

In an effort to bring in even more revenue, Netflix also announced it’s raising the price for its most expensive streaming service by $2 to $23 per month in the U.S., a 10% increase.

The $15.50 per month price for Netflix’s most popular streaming option in the U.S. will remain unchanged, as will a $7 monthly plan backed by ads.

The company’s shares soared nearly 13% in extended trading.