![]() 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. The new tier will come in at the reasonably affordable price of AU6.99 per month, which is AU4 cheaper than its ad-free Basic tier, which now costs AU10.99 per month. ![]() 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. Extra user pricing has not yet been announced, but Engadget noted it could be around 3 or 4 if the company follows the pilot program’s one quarter of the basic rate scheme. 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. Unmissable entertainment at unbeatable value : Basic with Ads will cost just 6. 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. We’re excited to launch Basic with Ads Netflix’s lower priced ad-supported plan in November. 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. 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. 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.
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