3/10/2024 0 Comments Netflix price raise![]() Netflix's financial performance also topped the analyst forecasts that shape investor expectations. The increase left Netflix with about 247 million worldwide subscribers, well above the 243.8 million projected by analysts surveyed by FactSet Research. The company added nearly 8.8 million worldwide subscribers during the July-September period, more than tripling the number gained during the same time last year when Netflix was scrambling to recover from a downturn in customers during the first half last year. It also raised its prices for subscribers in the U.K. will remain unchanged, as will a $7 monthly plan that includes intermittent commercials. The $15.50 per month price for Netflix's most popular streaming option in the U.S. a 10% increase - and its lowest-priced, ad-free streaming plan to $12 - another $2 bump. In an effort to bring in even more revenue, Netflix also announced it's raising the price for its most expensive streaming service by $2 to $23 per month in the U.S. LOS GATOS - Netflix on Wednesday disclosed summertime subscriber gains that surpassed industry analysts' projections, signaling the video streaming service's crackdown on password sharing is converting former freeloaders into paying customers. This story originally appeared in Los Angeles Times.Wired Wednesday - Netflix crackdown on password sharing major merger in streaming world 02:33 Netflix stock closed at $525.69 a share on Friday, up about 1%. "I do think that they like the idea of having a premium position in the market." "I do believe that had to be in their mind that they believed that consumers would see them as either a comparable or even a higher value than HBO Max as they made that decision," Sappington said. HBO and HBO Max said it had 73.8 million subscribers by the end of last year, higher than what it previously had forecasted. The price increase puts Netflix's standard plan at close to the $14.99 monthly cost of rival HBO Max's ad-free subscription plan. "We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options.” “We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members," Netflix said in a statement. The last time Netflix raised prices in the U.S. Netflix also raised the price for standard and premium subscription plans in Canada. A Netflix premium plan that allows for streaming on four screens at one time and Ultra HD, would rise $2 to $19.99 a month. Netflix said the cost of a basic plan would increase $1 to $9.99 a month, while a standard plan that allows for streaming two screens at the same time would increase $1.50 to $15.49 a month. "Right now, Netflix delivers enough value to justify the spend," Wang said. ![]() Wang says he believes customers will shrug off the price increase, adding many customers see Netflix as a "core" streaming service. Netflix also is expanding its programs in local languages, helping attract viewers internationally. The streamer spent $17 billion on content last year and could spend up to $22 billion in 2022, said Ray Wang, principal analyst of Palo Alto-based Constellation Research. Netflix's large library of TV shows like fantasy series "The Witcher" and movies such as "Red Notice" has helped attract more consumers to its platform. Netflix will release its earnings results Jan. An average of analyst estimates compiled by FactSet predicts the streamer will add 8.4 million new global subscribers in the fourth quarter compared with Netflix's forecast of 8.5 million. Still, some analysts are anticipating Netflix that will miss its internal subscriber projections for the fourth quarter. In the third quarter, there were 213.56 million global subscribers to the streaming service, up 9% compared with a year ago. That momentum has continued thanks to hit shows like "Squid Game," the acclaimed South Korean survival drama. But that changed as COVID-19 swept the globe and people joined Netflix in droves as they looked for ways to entertain themselves at home. subscriber growth and whether it could maintain its momentum. "This price increase is just part of their need to continue to raise revenues, to be able to compete effectively, to be able to create interesting content and then to be able to market effectively as competition's heightened."īefore the pandemic, Netflix had faced questions about weaker U.S. "If Netflix can't raise revenues and continue to raise revenues by adding subscribers, then they have to do it by by raising prices," said Brett Sappington, vice president of Culver City-based consumer insights firm Interpret.
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