""By leveraging an industry-low priced ad-supported offering, Netflix can aggressively push price on the top end while recapturing users looking to reduce their monthly bill," analyst Robert Fishman of MoffettNathanson wrote in a mid-April note."
""We think there's more runway than most people believe to increase subscription prices," said Luke Stillman, an analyst at advertising research firm Madison & Wall."
""Every time you see subscription prices going up, there are fewer cancellations than people expect, and there's pretty low elasticity to price increases.""
Netflix is optimistic about its future, forecasting revenue growth of up to 14% by 2026. The company is raising prices on its ad-free plans while offering a competitive ad-supported tier at $8.99. Analysts believe this strategy will help retain subscribers despite price increases, as Netflix has a low cancellation rate. The ad tier is expected to grow, allowing Netflix to capitalize on both higher subscription fees and ad revenue. Analysts suggest that price hikes have historically resulted in fewer cancellations than anticipated.
Read at www.businessinsider.com
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