Netflix (NFLX) is not planning on mountain climbing its US subscription prices just yet, despite streamers from Disney+ to Peacock all raising their respective prices this yr.
“We attempt to take into consideration our pricing, not in relationship to competitors, but from the worth that we’re delivering to members,” Netflix co-CEO Greg Peters said Thursday in the course of the company’s third quarter earnings call. “We wish to have a variety of price points. We predict that that is healthy.”
The corporate beat Q3 expectations across the board, adding one other 5 million-plus subscribers within the quarter. The stock surged 11% on Friday in consequence, lifting shares to a fresh all-time high of above $760.
Wall Street analysts have noted a price hike could be a positive catalyst for the stock within the near term, especially after its latest biannual viewership report showed subscribers watched over 94 billion hours on the platform from January to June.
“Given Netflix’s low price per viewed hour, we see scope for the firm to lift US prices by 12% in 2025,” Citi analyst Jason Bazinet said in a note to clients ahead of the report.
Netflix last raised the value of its Standard plan in January 2022, upping the monthly cost to $15.49 from $13.99. It also raised the value of its Premium tier by $2 to $19.99 a month at the identical time; the corporate again raised the associated fee of that plan last October to $22.99.
The corporate recently phased out its lowest-priced ad-free streaming plan, making the $15.49 Standard plan its least expensive offering for an ad-free experience.
Netflix has yet to lift the value of its ad-supported offering, introduced lower than two years ago, which stays one in all the most cost effective ad plans amongst all of the key streaming players at $6.99 a month.
“We love the low price point and increased accessibility that comes with our ad plan,” Peters said. “It represents an incredible value.”
Netflix, which has raised the costs of its plans in countries like Scandinavia and Japan, said Thursday it plans to extend prices in Spain and Italy as well.
With regard to the US, the corporate said it should proceed to take a look at metrics like engagement, acquisition, and retention as a way to assess the perfect price point for consumers.
“We’ll continually try to supply consumers a ramification of plan selections, the proper features at the proper price point, and evaluate that and evolve it based on what we expect works,” Peters said.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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