Netflix Inc. (NASDAQ:NFLX) is facing a regulatory probe in Poland over alleged unauthorized subscription price increases, even as it posts strong quarterly earnings, raises revenue guidance and celebrates its first-ever No. 1 theatrical release.
Poland's Watchdog Launches Investigation
Poland's Office of Competition and Consumer Protection accused Netflix of raising subscription fees in August 2024 without explicit customer approval, saying the company relied on user silence as consent, reported Reuters.
Some monthly plans reportedly rose by up to 7 zlotys ($1.92).
"The price of the service, like any provision, should not be changed unilaterally, without the explicit and informed consent of the user," UOKiK president Tomasz Chróstny said in a statement.
The watchdog has opened administrative proceedings and warned Netflix could face fines of up to 10% of turnover per unlawful clause and be required to reimburse overcharged customers.
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In response, Netflix said it would cooperate.
"Comfort and transparent communication with consumers are crucial for us, and acting in accordance with all applicable laws is our top priority," its press office told the publication.
Poland’s competition authority, UOKiK, stated that it had stepped in on a similar matter earlier this year, leading Amazon.com, Inc. (NASDAQ:AMZN) to revise its terms for Amazon Prime and Prime Video.
Netflix's Record Revenue And Raised Outlook
In July, Netflix reported first-quarter revenue of $11.08 billion, up 16% year-over-year, beating Wall Street expectations. Earnings per share came in at $7.19, above analyst forecasts.
The company credited subscriber growth, price hikes and growing ad revenue for the gains.
Netflix also raised its full-year revenue outlook to $44.8 billion–$45.2 billion, up from a prior forecast of $43.5 billion–$44.5 billion, and guided for a 29.5% operating margin for the full year.
‘KPop Demon Hunters' Scores Box Office Milestone
Meanwhile, Netflix's animated film "KPop Demon Hunters" topped the North American box office over the weekend, grossing about $18 million despite playing on fewer than half the screens of rival films.
The film's success came even though it has been available for streaming since June 20, drawing over 1,150 sold-out showings. It marks Netflix's first theatrical release to claim the No. 1 spot, highlighting its growing presence in cinemas.
Price Action: Netflix shares rose 0.14% in after-hours trading, per Benzinga Pro data.
Benzinga's Edge Stock Rankings indicate that NFLX is experiencing a short-term decline but continues to show a positive price trend over the medium and long term. Additional performance details can be found here.
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Photo Courtesy: Shutterstock/Daniel Avram
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
