Netflix Set To Lift Prices
They entered the Australian market offering cheap access to streamed content, now Netflix is looking to lift their prices in the US and Europe.
According to the WSJ, Netflix will shortly will raise the price of its midlevel “standard” plan by one dollar and its “premium” plan by two dollars. On June 28, Australia’s single-user standard-definition Netflix plan rose $1 to $9.99 per month including GST. Meanwhile the two-user HD plan increased $2 to $13.99 and the four-user Ultra HD plan jumped $3 to $17.99.
It has also rolled out price hikes in the past few years as subscriber growth in the U.S. has slowed down. But the company’s expansion in international markets has brought in many more customers, and as of June, international subscribers made up a majority of the company’s 104 million total streaming members.
WSJ said that investors who are bullish on Netflix have been betting there is headroom to raise prices without alienating the user base. Netflix shares rose up 3.7% in midday trading, putting the stock on track to close at an all-time high.
“From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience,” the company said in a statement. In 2016, Netflix’s average monthly revenue per paying streaming subscriber was $9.21 in the U.S. and $8.61 abroad, according to a company regulatory filing.
On social media, user feedback was mixed with some self-identified subscribers vowing to cancel the service while others saying it would still be much cheaper than traditional cable television offerings.
In August, Walt Disney announced it would launch streaming services for both its Disney entertainment and ESPN sports content. The new Disney-branded service will carry Disney movie releases starting in 2019.