The streamer appears to be reorienting around maximizing average revenue per user for its 74 million-plus U.S. and Canadian subs.
Cahall on Jan. 18 highlighted that management’s decision to raise prices could be a positive sign for recent subscriber trends. “We think Netflix tends to raise prices when churn is low, and this could stimulate more bullish views around fourth quarter 2021 and 2022 net adds,” he wrote.
Credit Suisse’s Douglas Mitchelson commented on price hikes even before they were announced, pointing out investor “concerns that Netflix will have a harder time raising prices when there is more competition in the marketplace.” But he also highlighted a counterpoint, arguing that “Netflix’s usage would suggest the service is a very cheap entertainment option, even for international households.”
According to the company’s last quarterly financial report, North America already had the highest ARPU in the world at $14.68, up from $13.40 a year earlier. The new price hikes will only drive that figure higher. Many of Netflix’s competitors, meanwhile, are seeing their ARPU decline globally as they seek scale in North America and expand into new markets. Disney+’s ARPU fell 9 percent to $4.12 per subscriber in fiscal Q4, while HBO Max’s ARPU began to fall in Q3 2021 following the launch of the less-expensive ad-supported tier last June. It ended Q3 at $11.82 per subscriber.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Netflix raises prices for all plans, but only in North AmericaPrices for all Netflix plans in the United States will increase from $1 to $2 per month.
Leer más »
P&G Earnings Top Estimates as Price Hikes Offset Rising Costs, Company Raises 2022 Sales ForecastShares of P&G have climbed 18% in the last 12 months, giving the company a market value of $387 billion.
Leer más »
Netflix Is Raising Its Prices AgainThe price of Netflix subscriptions are going up again.
Leer más »
Netflix’s price increase won’t affect T-Mobile customersStarting this month, old and new Netflix subscribers will have to pay up to $2 more each month to benefit from the company’s streaming service.
Leer más »
Oil prices climb to highest levels since 2014Crude oil prices in the U.S. rose 1.9% Tuesday, finishing at over $85 per barrel. Oil prices have not reached those ranges since October 2014.
Leer más »
HBO Max Drops Subscription Price: Save 20% Off Monthly PlansThis limited deal applies to the ad-supported and ad-free plans.
Leer más »