Netflix Faces Regulatory Probe in Poland Over Alleged Unauthorized Subscription Price Increases Amid Strong Q1 Earnings and Revenue Guidance Upgrade

Netflix is facing a regulatory probe in Poland over alleged unauthorized subscription price increases. The company is accused of raising prices without explicit customer approval, which could result in fines of up to 10% of turnover and reimbursement of overcharged customers. Despite this, Netflix reported strong Q1 earnings, raised revenue guidance, and celebrated its first-ever No. 1 theatrical release, "KPop Demon Hunters."

Netflix Inc. (NFLX) is currently under scrutiny from Poland's Office of Competition and Consumer Protection (UOKiK) over alleged unauthorized subscription price increases. The regulatory probe, launched on August 25, 2025, accuses Netflix of unilaterally raising subscription fees without explicit customer approval [1].

In August 2024, some monthly plans reportedly increased by up to 7 zlotys ($1.92) [1]. According to UOKiK, companies cannot change essential contract terms, such as pricing, without securing explicit approval from subscribers. 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 [1].

Netflix has stated it would cooperate with the investigation and act in accordance with all applicable laws. The company's press office emphasized the importance of transparent communication with consumers [1].

Despite the regulatory probe, Netflix reported strong Q1 earnings in July 2025. The company 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 [2]. 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 [2].

In addition to its financial performance, Netflix celebrated its first-ever No. 1 theatrical release, "KPop Demon Hunters," which topped the North American box office over the weekend. The film grossed about $18 million despite playing on fewer than half the screens of rival films [3]. The film's success highlights Netflix's growing presence in cinemas and its strategic shift towards hybrid monetization models [4].

Netflix's shares rose 0.14% in after-hours trading following the Q1 earnings report and the theatrical success of "KPop Demon Hunters" [2].

References:
[1] https://www.benzinga.com/news/entertainment/25/08/47324604/netflix-maybe-basking-in-the-success-of-kpop-demon-hunters-but-its-in-trouble-with-a-european-country
[2] https://www.reuters.com/sustainability/boards-policy-regulation/polish-consumer-watchdog-accuses-netflix-unauthorised-fee-hikes-2025-08-25/
[3] https://voi.id/en/technology/508511
[4] https://www.ainvest.com/news/netflix-theatrical-gambit-strategic-shift-financial-implications-media-streaming-sectors-2508/