Analysts Think Netflix May Raise Prices Soon

Piper Jaffray analysts are expecting Netflix to raise their prices at the beginning of next year. This comes after a survey found that 71% of 1,100 Netflix users felt that the service had improved.

This, of course, could signal to the streaming giant that people like what they’re doing and therefore they can raise the price just a little bit to help fund more endeavors. Netflix may be pushed to introduce the price increase if some of its original films receive Oscars. This also comes as Netflix is looking at introducing cheaper plans outside of the United States.

Chief product officer, Greg Peters, said the following on the earnings interview that discussed Q3 results:

“[W]e earn the right to increase price a bit and then we take that new revenue, invested back into the model and that sort of continuous positive cycle we get to keep going, and we foresee that that will keep going for many years in the future.”

Netflix has not officially said they plan to raise prices, but I wouldn’t be surprised. Would a price hike cause you to leave the streaming service?

Source: Variety