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Netflix binge-watching prices could soon become even more expensive.
That could happen if the streaming giant decides to raise membership prices again, which UBS communications and cable analyst John Hodulyk says is very likely this year.
UBS: “I’m looking forward to it.”[s] “We expect rate increases this year,” he said in a recent research note, noting that “advertising revenue growth” will increase average revenue per member by 5%. FOX Business has reached out to the company for comment.
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)
Netflix currently costs $15.49 and $22.99 per month for its ad-free Standard and Premium plans, respectively, for U.S. subscribers, while its Standard plan with ads costs $6.99. The streaming giant also has a basic tier of $11.99 per month, which will be phased out and “will no longer be available to new or returning members,” according to the company’s website.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| NFLX | Netflix Co., Ltd. | 619.34 | +16.42 | +2.72% |
As FOX Business reported at the time, the basic and premium options reached that price level in the U.S. last year, after Netflix announced price increases of $2 for the former and $3 for the latter in mid-October. The company also raised prices in the UK and France.
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“While we expect net additions to slow, we believe there is still significant growth ahead as Netflix continues to convert users to paid subscribers and attract new demographics,” Khodulyk said in a research note. continued. “This, along with rising prices and expansion of advertising platforms, will accelerate growth in 2024, with a CAGR of 13% expected by 2027.”
According to a research note, UBS predicted that the streaming giant’s revenue (a “buy” for them) could reach 15% growth this year.
PARIS, FRANCE – FEBRUARY 13: In this photo, the Netflix logo is displayed on the screen of an iPhone in front of a computer screen displaying the Netflix logo on February 13, 2019 in Paris, France . Netflix, America’s largest online video subscription company ((Photo by Chesnot/Getty Images) / Getty Images)
About a month before the memo, co-CEO Greg Peters told analysts and investors that the company would “not replace price increases with alternative price increases while we roll out our paid sharing work.” “We saw this as a form of “increase,” so we put most of the price increases on hold.”
“Now that we’ve gotten through that, we can resume our standard approach to price increases,” co-CEO Greg Peters said at the time, adding that the company “will continue to monitor and assess other countries.” added. Justify a price increase when you are able to provide sufficient additional entertainment value.
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The company previously said, “As we invest in and improve Netflix, we may occasionally ask members to pay additional fees to reflect those improvements. This allows us to further improve and grow our service. “We can drive a positive springboard of additional investment.” . ”
Netflix’s total subscribers included 260.28 million worldwide as of the end of the fourth quarter. In the same three-month period last year, the number was 230.75 million.
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Users of other streaming platforms also saw their subscription prices increase in 2023.
The streaming service Netflix logo will appear on your TV. (Thomas Trutschel/Photothek, Getty Images/Getty Images)
For example, in mid-October, Disney officially raised the monthly price of ad-free Disney+ and Hulu standalone subscriptions by $3. The subscription fee for the Apple TV+ streaming service also increased by $3 that month, having been $6.99 since October 2022.
