3/10/2024 0 Comments Netflix price hike 2019![]() That’s based on the firm’s survey of about 1,100 U.S. In a report last November, Piper Jaffray analysts postulated that Netflix was in a solid position to raise streaming prices on a regular basis. Netflix’s growth among low-income Americans flatlined in 2018 while Hulu and YouTube paid streaming services continued to add new users, according to data from Earnin, a service that targets lower-income consumers by providing cash advances on their paychecks without interest or fees.īut other research has backed up Netflix’s relative pricing power. “he latest price increase may slow domestic subscriber growth dramatically this year,” the analyst wrote in a note Tuesday. In Pachter’s analysis, Netflix has “fully penetrated” households with above-median income, suggesting that future domestic growth would have to come from lower-income households (i.e. Currently, the analyst has an “underperform” rating on Netflix’s stock, with a 12-month price target of $150 per share (less than half the price it’s currently trading at). That’s Wedbush Securities’ Michael Pachter, well known for his bearish calls on Netflix. Netflix also banked a company-record 23 trophies at the 2018 Emmy Awards.īut at least one Wall Street analyst is warning that the Netflix price hike will weigh on U.S. It could be Netflix execs feel the time is right to throw the switch given momentum behind its original content: Alfonso Cuarón’s “Roma” picked up Golden Globes wins and has Oscars buzz, and then there was Netflix’s claim that 45 million member accounts watched at least 70% of Sandra Bullock-starrer “Bird Box” in the first seven days, bolstered by Nielsen data. Begley believes Netflix will reach 200 million total paying subscribers in 2021 and will achieve break-even free cash flow by 2023. And to the extent that Netflix raises prices in international markets, that top-line number could more than double, he added. subscriber base at around 60 million, an average monthly increase of $1.50 per sub would bring in $90 million more per month - or $1.08 billion per year in the U.S. “We don’t believe that will slow subscriber growth, as the new price points remain competitive relative to Netflix’s volume of original and licensed content,” said Neil Begley, SVP at credit rating firm Moody’s. And its most popular plan is still two bucks less than HBO Now ($15 per month). But analysts noted that even at $12.99 per month, Netflix’s standard plan represents a great entertainment value, especially compared with traditional pay-TV bundles. Sure, nobody is really happy about paying more for what’s ostensibly the same product. ![]() It is expected to report a net 8.4 million increase in subscribers and a worldwide total of 221.9 million, according to data compiled by Bloomberg.And investors are bullish on Netflix’s move to flex its pricing biceps: The stock rose 6.5% on Tuesday, to close at a three-month high of $354.64 per share. The company releases its fourth-quarter earnings next week. ![]() Shares of Netflix rose as much as 3.7% on the news, which was reported earlier by Reuters. “As always, we offer a range of plans so members can pick a price that works for their budget.” “We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options,” a spokesperson for the company said in an emailed statement. Netflix also raised prices in Canada, where the mid-tier plan costs C$16.49. It has been increasing them about every one or two years. The streaming industry leader last raised prices in October 2020, when the standard plan went up by $1. The company’s standard plan now costs $15.49 in the U.S., a $1.50 increase. The changes, which were posted on Netflix’s website, range from a $1 increase for its basic plan, which allows just one user at a time, to a $2 boost for the premium service, which offers an ultra-high-definition picture and four screens.
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