More Netflix price hikes might be coming soon, analysts say (2024)
There appears to be another Netflix price increase just around the corner. Wall Street analysts are expecting Netflix to raise prices across its streaming service in 2024, first reported by Variety.
“We expect to see rate increases this year,” said UBS analyst John Hodulik about Netflix in a research note on Tuesday, seen by Variety. UBS says the expected price hike and ad revenue could push Netflix’s revenue growth to 15% in 2024, roughly double what it was in 2023.
Netflix raised prices for its Basic plan from $9.99 to $11.99 just a few months ago, but it seems another price hike is on the horizon. The company appears to be on a mission to extract more value out of its current subscribers.
So far, subscribers have not been leaving Netflix due to price increases in the U.S. and overseas.
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“Those changes went well, better than we forecasted,” said Co-CEO Greg Peters on Netflix’s earnings call last month. Now Netflix is testing how much it can increase those prices.
UBS expects healthy subscriber growth from Netflix this year, but streaming services as a whole have been struggling to attract new customers. In 2023, subscriber growth fell from 21.6% to 10.1% across streaming services, according to a report from research firm Antenna. That’s why many streamers are now asking you to pay more or watch advertisem*nts.
Because of this shift, UBS analysts see Netflix as the “main beneficiary of structural changes in media.” Analysts expect that Netflix will be able to increase prices and retain subscribers more than other streaming services, because of its large premium library and dedicated following.
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The price hikes are part of our new era in streaming. For the last decade, Netflix has focused on growing its subscriber base as much as possible. However, now it’s large enough that it needs to become solidly profitable. For the consumer, that means higher prices, more ads, and probably less original content from Netflix. The golden era of streaming may be coming to a close.
While Netflix itself has not indicated that a price hike is on the horizon, analysts at UBS Securities (reported by Variety) suggest that Netflix will increase the price of its streaming plans in 2024 in order to “accelerate its revenue and earnings growth.” In a research paper released this week, UBS's John Hodulik ...
Netflix is expected to hike prices on its streaming plans in 2024 — a move that should accelerate its revenue and earnings growth — as it continues to take a bigger bite out of overall TV viewing, according to analysts at UBS Securities.
On Wednesday, Netflix announced in its third quarter earnings that it's increasing prices on its Basic and Premium subscription plans. Basic plan subscribers will now pay $11.99 per month, an increase of $2 per month, and Premium plan subscribers will now pay $22.99 per month, an increase of $3 per month.
Netflix Premium Plan Explained – $22.99/Month (May 2024)
Another advantage is that you may download Netflix content to up to six devices simultaneously, allowing four people to view Netflix simultaneously and two more to continue watching their downloaded video without any issues or problems.
Customers must pay $7.99 per month to share their account with people outside their household. Under the standard plan, users can add only one “extra member” outside their household.
Additional tiers include $15.49 for Standard service, which includes 2 screens, and $22.99 for Premium, which includes 4 screens as well as upgraded HDR/4K resolution.
Based on 37 Wall Street analysts offering 12 month price targets for Netflix in the last 3 months. The average price target is $709.48 with a high forecast of $900.00 and a low forecast of $545.00.
A Netflix account is meant to be shared by people who live together in one household. People who are not in your household will need to use their own account to watch Netflix. Learn more about sharing Netflix. Account owners can buy an extra member slot and invite people outside their household to use Netflix.
How much does Netflix cost? Watch Netflix on your smartphone, tablet, Smart TV, laptop, or streaming device, all for one fixed monthly fee. Plans range from $6.99 to $22.99 a month (pre-tax). No extra costs, no contracts.
Major platforms such as AppleTV+, Amazon Prime Video, Max, Peaco*ck, Paramount+, Netflix, Hulu, and Disney+ have all witnessed a considerable decline in subscribers. Approximately 25% of US subscribers have canceled at least three of these services, signaling a troubling trend for the industry.
The Standard with ads plan is suitable for occasional viewers, while the Standard plan is ad-free and allows for streaming on multiple devices. The Premium plan is recommended for large families and offers 4K streaming and downloads on up to six devices.
You can easily set up and manage your Netflix household through most TV devices. Members can watch on up to four supported devices at once if they're on the same WiFi network or using the same internet connection.
We do not collect GPS data to try to determine the precise physical location of your devices. If a Netflix Household hasn't been set, we will automatically set one for you based on IP address, device IDs, and account activity.
A Netflix account is meant to be shared by people living together in one household. People who are not in your household will need to sign up for their own account to watch; or in many countries you can buy an extra member slot to add an extra member to your account.
The company is cracking down on customers who share their accounts with people outside a single geographic household, introducing an $8 monthly charge in a long-threatened bid to retain customers and stanch a slowdown in subscription growth.
In short, you can still use your account while traveling or while moving between addresses. Netflix will track whether you're streaming from your primary household (i.e. connected from the IP address linked with your account). If you're streaming elsewhere, Netflix may ask you to verify the device using your account.
The stock's total value must multiply by nearly 5 before reaching a $1 trillion market cap -- an ambitious goal that calls for time and patience. A more reasonable, yet consistently market-beating, estimate suggests Netflix could reach a $564 million market cap by 2030 and $1 trillion in 2035.
Standard with Ads - $6.99/month. Ad-supported, all but a few movies and TV shows available, unlimited mobile games. Watch on 2 supported devices at a time. ...
Standard - $15.49/month. Unlimited ad-free movies, TV shows, and mobile games. ...
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