![]() Its stock is up 12.8% from Tuesday’s close, trading on Wednesday at $550 per share. The company posted $8.83 billion in revenue for the fourth quarter of 2023, up more than 12% year over year. The news follows a strong quarter for Netflix, in which the company beat revenue and subscriber growth estimates from Wall Street. ![]() “A potential churn spike” from this increase could, among other factors, “spook the market and reset Netflix’s multiple yet again,” MoffettNathanson analysts said in a report published on Wednesday. The premium tier, at $22.99 per month as of an October price increase, is now one of the most expensive in the industry. But some are also questioning how high Netflix can push it without significant churn. “Further price hikes will be tightly correlated to a strong performing content slate,” Bernstein analysts added in a report published on Wednesday.Īnalysts previously told Fortune they see no end to the price increases across the streaming industry, because it can effectively pump revenue and keep investors happy in a saturated market. Netflix took another big step this week in its plans to augment the entertainment value with a $5 billion, 10-year deal with World Wrestling Entertainment. “We look at engagement, retention, acquisition as the signals there, so that we can go back to members and ask them to pay a bit more to keep that positive flywheel going, and we can invest in more great films, series, and games for those members,” Peters said. The move may impact how the company plans to change prices for adjacent tiers.īased on what the company’s co-CEOs have shared, Netflix will begin charging more in specific regions when it determines it has delivered enough “entertainment value” to do so. and Canada, to drive users toward its ad tier, executives said in the company’s earnings note. The company will phase out its Basic plan for new members in prime advertising markets, including the U.K. While Netflix’s past strategies can indicate what executives are thinking for the future, it is difficult to make any concrete determinations about executives’ plans for price increases. Netflix is only raising prices on its basic and premium plans. And they can expect to shell out more money for the Standard tier in the near future, given that executives last increased its cost in January of 2022. consumers can expect the price of the advertising tier to remain stable over the next couple years, since it only launched in November of 2022. ![]() If Netflix follows that same course of action, U.S. Netflix doesnt usually raise prices in a. next year by 1 per month, itll generate an additional 800 million in revenue just from its U.S. But after that honeymoon phase, Netflix tends to increase the monthly cost of its tiers by a couple dollars every year to every other year. If Netflix raises its pricing in the U.S. In the same month, it laid out a plan to crack down on password sharing by subscribers that was rolled out in over 100 countries in May.In the first four to five years after launching a new tier of service, the company typically doesn’t raise the price of that product. 'The fact that Netflix made this price-hike announcement right after the writers strike that dragged on for 148 days was a bad move from a public relations perspective, Knauff says. Netflix cut the prices of its subscription plans in some countries in February. The writers' union struck a tentative deal with the AMPTP last week after five months of negotiations. Actors resumed negotiations with the Alliance of Motion Picture and Television Producers (AMPTP) on Monday this week and will continue on Wednesday. SAG-AFTRA has been on strike since mid-July and it remains uncertain when it will end. The current Netflix prices are as follows: Standard with ads: $6.99/month Standard ad-free: $15.49/month (extra member slots can be added for $7.99 each/month) Premium: $19.99/month (extra member slots can be added for $7.99 each/month). In case you’ve missed it through all the recent headlines, customers now have three subscription options: Standard with ads (6.99 per month) Standard (15.49 per month) Premium (19. It's also uncertain if other online streaming services will follow suit. That presumably means that we’ll likely see subscription prices remain the same until at least sometime in mid-2024. It was not immediately clear how much Netflix will raise prices or when exactly the new prices will take effect, according to the report. Netflix is discussing raising prices in several markets globally, but will likely begin with the United States and Canada, the WSJ reported, citing people familiar with the matter. The Wall Street Journal reported that the streaming juggernaut is planning to raise the price of its ad-free service after the ongoing Hollywood actors' strike ends. It appears that Netflix is heading towards another price hike once a SAG-AFTRA deal is finalized.
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