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Whether Netflix plans to raise prices for streaming subscriptions in the future will likely be raised again as the company nears its upcoming third-quarter financial results.
Netflix subscribers in the US will have to pay a monthly fee of $6.99 for the ad-supported plan, while the standard and premium tiers cost $15.49 and $22.99 per month. Both plans are ad-free.
The streaming giant's most recent price increases occurred last fall, when U.S. subscribers saw prices for their Basic and Premium tiers increase since they were discontinued. Netflix subscription prices also increased in the UK and France at the same time.
In front of a TV screen with the Netflix logo, you can see a hand holding a TV remote control with a “Netflix button” on it. (Photo credit: Nikos Pekiaridis/NurPhoto, Getty Images) (Nikos Pekiaridis/NurPhoto via Getty Images/Getty Images)
Oppenheimer & Company said in an Oct. 9 research note that it expects “premium price increases and, more importantly, standard plan price increases of 8% to 15% in other regions.”
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The company's Jason Helfstein said prices for the Standard plan have been flat since January 2022, when Netflix raised prices by $1.50 in the United States.
“In January 2022, the NFLX Standard plan price was 53% higher than its peers and is now 4% higher than its peers. Meanwhile, in the US, the plan is 18%/9%/3% higher than Hulu/Max/Disney+ It's cheap,” he said. Note. “Additionally, the 15% increase means a 23% discount on premium plans, in line with historical averages.”
Helfstein also said that “strong Q3 viewership and Q4 content plans, including the NFL, should further reduce churn risk.”
The Netflix logo will appear on your phone screen and the Netflix website will appear as an illustrated photo in the background. January 23, 2023, Krakow, Poland. (Beata Saursel/NurPhoto via Getty Images/Getty Images)
Oppenheimer raised its average revenue per member forecast for the fourth quarter and fiscal year 2025 by 2% to factor in the possible increase.
Tim Nolen, senior media technology analyst at Macquarie US Equity Research, raised his price target on Netflix on Friday, writing in a research note that “Netflix's long-term outlook is driven by sports and potential price increases. We are confident in our advertising base.” The note provided insight into media technology companies ahead of their third-quarter results.
The analyst hinted at possible price increases for U.S. subscribers.
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“We believe Netflix has strong pricing power, given that Netflix has not increased the price of its Standard tier since January 2022.Currently, both Hulu and Max are lower than Netflix Standard. is also expensive,” Macquarie's research notes said. “Netflix boasts the lowest priced video streaming service at $6.99 with ads, demonstrating great value for money and also reducing churn.”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| NFLX | Netflix Co., Ltd. | 702.00 | -3.98 |
-0.56% |
FOX Business has reached out to Netflix for comment.
Netflix executives told analysts and investors that the company considers signals such as member acquisition, engagement and retention when deciding when to raise subscription prices.
Earlier this year, co-CEO Gregory Peters said Netflix viewed the crackdown on password sharing as an “alternative price increase” and did not increase subscription prices while the initiative was being rolled out. Ta.
Brazil – 12/05/2023: In this photo illustration, the Netflix logo is displayed on a smartphone screen. (Photo illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images / Getty Images)
Last year, Netflix began seriously restricting Netflix account sharing to “people who live together in one household,” meaning people outside the household must either get their own membership or “add” the account they were using. You can either become a member or become a member.
NETFLIX wants you to binge.
“Additional members” cost an additional fee ($7.99 per month in the U.S.) and provided the streaming giant with increased subscriber numbers and revenue.
“We offer several different price points to help consumers choose the plan that best fits their situation and needs,” the company says on its website. “Additionally, we regularly adjust our prices so that we can invest in services to better serve our members. We also make changes to our pricing to better understand consumer demand. We are also testing different approaches (including different plans and price points).”
Netflix and its content platform are available in more than 190 countries around the world.
