All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account “It does give HBO Max some room to raise prices as well.” (DIS)+, I’m not sure for others like Peacock or Paramount+ because they don’t have the breadth of content as Netflix and Disney Streaming is eating into consumers’ wallets.Īs goes Netflix so goes the rest of streaming, so this price hike potentially gives a runway to the company’s streaming rivals to also raise their own prices at some point. “Now a whole new era of challenges and opportunity begins.”Ī dollar here and a dollar there might not seem like much, but it matters to both Netflix and consumers.įor some consumers, price increases - even $1.50 - may be too much considering the influx of services in recent years from Disney+ to Peacock to HBO Max (which is owned by CNN parent’s company, WarnerMedia). “They’ve reinvented the entertainment industry in the last decade.” he added. Challenges lie ahead for Netflix on subscriber growth, production costs and evolving consumer habits, Hare said. “In the near term Netflix continues to be the premier streaming service both at home and abroad,” Hare said.īeyond that? TBD. Of course, Netflix is still Netflix and continues to be massively popular with its 213.5 million users around the world. “That’s why they need to talk about the global growth story, positive cash flow, new content, new growth opportunities like gaming, and potentially new business models and markets.” “Subscriber growth in the US and Canada has been a difficult story to tell,” Hare said. If Netflix continues to bring in so-so subscriber growth numbers, Hare believes that the company will need to focus on other ways to make its investors happy. That’s why investors will be so focused on what Netflix says about the current quarter and beyond, as those higher prices start to kick in. “We’re estimating that Netflix will spend $17 billion globally and that’s off $12 billion in 2020, which happened to be a down year because of Covid,” he said. Mark Zgutowicz, a senior analyst with Rosenblatt Securities, said that Netflix spends a ton of money on content around the world, which hasn’t been supported by two of its biggest markets, US and Canada, where subscriber growth has “waned over the past several quarters.” Wall Street was happy with the news, sending Netflix’s stock up roughly 2% on Friday. In Canada, Netflix’s standard plan also went up $1.50 to $16.49 Canadian and the premium plan rose $2 to $20.99 Canadian. The premium plan increased $2 per month, to $19.99. The streaming media company said Friday that it’s raising the monthly price for a US subscription to its standard plan by $1.50, to $15.49, and its basic plan by $1 to $9.99. “Raising prices is just one lever they can continue to pull right now, though I’m not sure for how much longer,” Hare said. Netflix teaming up with PGA Tour and golf's majors for 'immersive' docuseries with glittering cast of players Alex Goodlett/CJ Cup Summit/ Ben Jared/PGA TOUR/Getty Images
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