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What Netflix Risks with the Latest Price Increases — Information

Netflix is ​​raising the price to $ 20 per month. Yes, video streaming pioneers may have significantly improved the cable TV experience, but there are no ads. This mimics one of the worst habits of cables, the usual price increases. Netflix has raised prices in the United States for the third time in the last three years. The top tier of this service is 42% higher than in late 2018.

It’s inflation for you. At least Wall Street was happy. Netflix’s share price, which fell 25% in the last two months, rose 1.25% in the news as market jitter increased. Is it really good for stock? Indeed, Netflix’s revenue will grow in the short term. Assuming this move is limited to the United States, revenue should increase by $ 1 billion annually, or more than 4%. However, we do not know how many subscribers to cancel. Indeed, according to a survey of customers by Profit Well, a software company that handles subscription services, the $ 20 price limit is the amount many people are willing to pay to Netflix. However, the two subtiers, $ 10 and $ 15.50 per month, protect the company from losing a lot, said Patrick Campbell, CEO of Profit Well.

https://www.theinformation.com/articles/what-netflix-risks-with-its-latest-price-hike What Netflix Risks with the Latest Price Increases — Information

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