Will Netflix See a Price Increase Soon? Possibly





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A Netflix price hike is likely on the way, according to one analyst.

Jefferies analyst Brent Thill shared in a note to clients that a price increase for Netflix subscriptions is likely, with Netflix set to make anywhere from $500 million to $1 billion in extra sales next year, just by charging $1-2 more across all markets. While Thill predicts that Netflix may see a slight drop in international subscribers with a price increase, he says many subscribers will keep Netflix as many of us have depended on the streaming service for entertainment during the pandemic.

“While the stock has hit a bit of a lull post earnings given soft 3Q guidance and a somewhat light summer content slate, we continue to believe Netflix will deliver normalized high double-digit top line growth with sizable margin expansion over time,” Thill told investors.

The last price hike for Netflix was in January 2019, the first increase in five years. At that time the price of the Standard plan went up from $10.99/month to $12.99/month. The Basic plan increased from $7.99 to $8.99 and the Premium plan went from $13.99 to $15.99.

“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company said in a statement at the time of the 2019 increase.

Netflix estimates 2.5 million new subscribers in Q3 after increasing revenue by 25% in the second quarter to $6.15 billion, largely due to stay at home orders.

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