Ahead of Netflix’s quarterly earnings announcement, interest in the timing of subscription fee increases is growing on Wall Street.
Analysts believe Netflix has room to raise prices thanks to its strong content lineup.
Oppenheimer analysts predicted that Netflix would “announce strong earnings and guidance and raise prices,” as its stock price rose following the company’s second-quarter earnings report. Currently, Netflix’s standard plan is cheaper than Disney+, Hulu, and Max.
This increase is likely to come in conjunction with price increases for other streaming services, as well as increases in various costs such as groceries and rent.
Other analysts, including Jefferies, Citi, and Piper Sandler, also predicted that Netflix would soon raise prices. Jeffries noted that major content, including NFL games and Season 2 of “Squid Game,” will support the price increase.
Oppenheimer emphasized that Netflix increased the price of its premium plan last year, and that the standard plan has not increased in over two years. They predicted that “the standard plan will increase by 8% to 15%.”
The film and TV studio industry is turning to cutting costs and raising prices following recent strikes.
Netflix has announced that it will no longer report quarterly membership figures next year, which could be interpreted as a move to use viewing time as its other key metric.
(Photo = Yonhap News)
Reporter Jeon Ga-eun
