Netflix Still Has Room to Raise Prices, but It Won't Happen This Year
Netflix (NASDAQ: NFLX) is facing a lot of new competition, all at varying price points. From the free (ad-supported) Peacock by Comcast's (NASDAQ: CMCSA) NBCUniversal to the premium-priced HBO Max by AT&T's (NYSE: T) WarnerMedia, there'll be a streaming service that fits into any budget.
So, where does Netflix fall in that spectrum, in terms of value from free to ultra-premium? Starting at just $9 per month, Netflix is still exceptionally affordable. Especially when you compare it against the forthcoming HBO Max and its $15 per month price point.
When asked, consumers seem willing to pay prices closer to HBO Max than to Peacock. A survey from Piper Sandler analyst Michael Olson found that the average Netflix subscriber was willing to absorb a price hike of $2.40 per month. Netflix's last price hike was an average of nearly $2 per month and produced a noticeable impact on subscribers. But the two new competitors could inform Netflix's next price hike to help it make a better decision.
Source Fool.com
