Netflix (NFLX) is just not planning on mountaineering its US subscription prices just yet, despite streamers from Disney+ to Peacock all raising their respective prices this yr.
“We try and think about our pricing, not in relationship to competitors, but from the price that we’re delivering to members,” Netflix co-CEO Greg Peters said Thursday in the middle of the corporate’s third quarter earnings call. “We want to have quite a lot of price points. We predict that that’s healthy.”
The company beat Q3 expectations across the board, adding one other 5 million-plus subscribers throughout 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 may very well be a positive catalyst for the stock throughout 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 worth of its Standard plan in January 2022, upping the monthly cost to $15.49 from $13.99. It also raised the worth of its Premium tier by $2 to $19.99 a month on the an identical time; the company again raised the associated fee of that plan last October to $22.99.
The company 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 worth of its ad-supported offering, introduced lower than two years ago, which stays one in every of probably the most cost effective ad plans amongst the entire 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 prices of its plans in countries like Scandinavia and Japan, said Thursday it plans to increase prices in Spain and Italy as well.
With regard to the US, the company said it should proceed to check out metrics like engagement, acquisition, and retention as a method to assess the right price point for consumers.
“We’ll continually try to produce consumers a ramification of plan selections, the correct features at the correct 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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