Will Higher Prices Hurt or Help Netflix in 2022?
Digital media veteran Netflix (NASDAQ: NFLX) just raised subscription prices across North America, marking the third price increase in three years. Will this 11% pricing change trigger a huge wave of canceled subscriptions, or should investors expect the top line to grow without any meaningful loss of subscribers?
Here's what the data from Netflix's previous price increases tells me.
The new price increases are remarkably consistent. The most budget-conscious plan now costs $9.99 per month for new subscribers, up from $8.99. The most popular mid-level service fee rose from $13.99 to $15.49 per month. Premium subscribers are now shelling out $19.99 per month instead of $17.99. In every case, these changes work out to an 11% increase.
Source Fool.com
