Mark Mahaney, CEO of Evercore ISI, analyzes Uber and explains why he's raising his price target on Netflix in Varney & Co.
Netflix subscribers will see a significant jump in their monthly subscription costs as the streaming company enjoys new viewers.
in one Letter to shareholders On Tuesday, the company announced it had raised prices on most plans in the United States, Canada, Portugal and Argentina.
According to Gregory K. Peters, CEO, president and director of Netflix, standard monthly subscriptions increased by $1 to $7.99 per month.
Lucas Behdi and Armando Casamonica fight during Netflix: Jake Paul vs. Mike Tyson at AT&T Stadium on November 15, 2024 in Arlington, Texas. (Sarah Steer/Getty Images for Netflix/Getty Images)
Netflix CEO Ted Sarandos will meet with Trump
Ad-free memberships will increase by more than two dollars, to $17.99 a month, Peters said. Premium subscribers It will cost an additional two dollars per month, bringing the monthly cost to $24.99.
Peters described the company's new pricing as “very affordable.”
“You've seen us increase pricing in a number of markets in EMEA, APAC and LatAm over the last quarter across most plans, including promotions. And those changes have been gradual,” Peters said. We certainly expect the same for these latest changes.
“I think it's worth noting and repeating that we believe our starting price — $7.99 in the US, $17.99 in Canada for Standard with ads — is an incredible entertainment value and a very accessible entry point.”
The new prices are now reflected on the streaming service's website.
In this photo taken on January 20, 2022, the Netflix logo is seen on a television remote control. (Reuters/Dado Rovic/Reuters)
Netflix added 19 million new subscribers in the fourth quarter, bringing its total to 302 million worldwide.
Live events, incl Jake Paul vs. Mike Tyson fight And two NFL games, leadership said, contributed to the company's recent success.
The fight was the most-watched sporting event of all time, and on Christmas Day, the platform delivered the two most-streamed NFL games in history.
| ticker | security | the last | change | change % |
|---|---|---|---|---|
| NFLX | NETFLIX Inc. | 869.68 | +11.58 |
+1.35% |
Tech leaders Bezos, Zuckerberg, Cook and Pichai seek face time with Trump
Theodore A. Sarandos, co-CEO, Chairman and Director, noted the basic economics Major league games all season Challenging, but if there was a way to do it, Netflix would look into it.
In addition, the company experienced success with the second season of its original series, The Squid Game, which had nearly 166 million views.
Other popular shows include The Diplomat season 2 with 21.4 million views, The Senate with 16.2 million views, The Empress season 2 with 21 million views, Outer Banks season 4 with 36.8 million views, The Lincoln Lawyer season 3 with 33.9 million views, and Virgin River Season 6 with 27.5 million views.
LOS ANGELES, CA – JUNE 12: (L-R) Netflix CEO Ted Sarandos and Lee Jong-jae attend Netflix's FYSEE event for 'The Squid Game' at Raleigh Hollywood Studios on June 12, 2022 in Los Angeles, California. (Photo by Charlie Galli/Getty Images for N (Harley Gallay/Getty Images for Netflix/Getty Images)
Leadership noted that the company captures only 6 percent of revenue opportunities in the countries and sectors it currently serves.
This company hopes to increase its share every year by improving and expanding its offerings.
“While we continue to invest in programming and deliver more value to our members, sometimes we ask our members to pay a little more so we can reinvest to make Netflix even better,” the letter to investors said.
Get FOX Business on the Move by clicking here
According to company data, revenue in the fourth quarter rose 16 percent year-over-year to $10.25 billion. A $15 billion share buyback boosted the stock by 13%.