![]() Rival Disney has recently been the most aggressive of the streamers when it comes to price increases. Netflix declined comment on the reported price increase both to WSJ and to IndieWire.įor once, Netflix playing catch-up with the rest of the business. and Canada.” The report did not have a dollar amount nor a date for said price hikes. Netflix is “discussing raising prices in several markets globally,” WSJ wrote, “but will likely begin with the U.S. Soon, it sounds like Netflix will be passing the cost on to you and me. The WGA fought for - and got - some healthy increases from its asks. Streaming changed the game and new rules had to follow. As the largest streamer, it tied back to key sticking points of staffing minimums for writers rooms (WGA) and streaming residuals (WGA and SAG-AFTRA). Netflix has been a very public target for both creative guilds. The WGA strike began May 2 SAG-AFTRA joined writers on the picket lines July 14. Its stock is up 12.8% from Tuesday’s close, trading on Wednesday at $550 per share.‘Wicked’ Teaser: Ariana Grande and Cynthia Erivo Defy Gravity in ‘Wizard of Oz’ Prequel 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. 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. 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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