• News
  • Culture&Arts

Netflix Raising Prices For 58M US Subscribers As Costs Rise

Netflix Raising Prices For 58M US Subscribers As Costs Rise

The price hike could help Netflix pay for programming. If the muted reaction to the company's recent, albeit modest, price increases are any indication, Netflix could charge as much as $15.50 per month for a standard subscription, now priced at $13, without much issue, according to Piper Jaffray.

Netflix's earnings report demonstrated the correlation between content spend and subscriber net adds remained stable with an R-square of 0.93 (i.e., as content spend increases so does net adds), Terry said in a note.

For starters, Netflix says its math shows that it now accounts for 10 percent of all TV screen time in the US.

However, Netflix spokesman told Associated Press that the streaming service weren't planning to cut the disaster scene from Bird Box, stating: "We will keep the clip in the movie". But this is the first time that higher prices will hit all 58 million USA subscribers, the number Netflix reported at the end of September. Netflix reported $4.19 billion in revenue, just under global forecasts of $4.21 billion.

The internet entertainment service provider announced on Tuesday it's raising prices of all of its subscription plans, a move that sent its stock price surging for more than 6 percent on the day.

Netflix (NFLX) said Thursday that it added almost nine million new paying subscribers during the final three months of 2018, beating its own expectations of 7.6 million new subscribers.

The share price fell in after-hours trading at one time, more than four percent.

Netflix Inc. shares slipped in late trading after fourth-quarter revenue came in below Wall Street estimates, a sign an explosion of new programming failed to hook enough viewers. "It will be interesting to see how Netflix responds to a future of smart, digital TV advertising and whether it will be forced into an ad-based model to sate the increasing consumer demand for exclusive and engaging content". The last time Netflix raised prices was in October 2017.

Netflix estimates that Bird Box, its buzzy film starring Sandra Bullock, was viewed by more than 80 million members in its first four weeks.

In December, Netflix said that more than 45 million accounts watched the apocalyptic film in its first seven days, marking a record-breaking debut. For the first quarter, Netflix predicted even a growth in customer numbers by 8.9 million, which was above the expectations of analysts.

"Our focus is not on Disney+, Amazon or others, but on how we can improve our experience for our members", the company said, referencing the name of Disney's new streaming service that is scheduled for launch this year.

It's unclear if Netflix is in the "beginning of the end" stages of its growth cycle or "end of the beginning", Martin said. Analysts are expecting earnings of Dollars 82 cents per share on revenue of USD 4.61 Billion.

Leave Your Comment

Leave Your Comment

Latest News

Breaking News


China's Rapidly Modernizing Military Has U.S. Senior Officials Concerned

China's most terrifying weapons are the most advanced in their field in the world. "In some areas, it already leads the world". That has led to Beijing ratcheting up economic, military and diplomatic pressure on the island of 23 million.

China's US trade surplus hit record in 2018 but tariffs bite

Exports rose 7.1 per cent, customs data showed Monday, down from the 7.9 per cent reported earlier for 2017. China has retaliated with tariffs of its own.

Jordan Henderson: Mo Salah will be motivated by criticism

He made the sprints but I didn't like the way he did the sprints because when he slowed down, it looked a bit like limping.

Lionel Messi becomes first player to score 400 La Liga goals

The third goal was simple, however, as Sergi Roberto took a quick throw and freed the scuttling Suarez. Second-placed Atletico kept up the pressure on Barca with a controversial 1-0 home win over Levante .

A Massive Winter Storm Blankets Parts Of The US, Kills Five

There are more than 40 million now under winter storm alerts, in what is the first big winter storm of the season for most areas. Gia is expected to bring additional snow to the Ohio Valley and Mid-Atlantic by Sunday evening, the Weather Channel reported.

Thai authorities will not deport Saudi teen seeking asylum in Australia

Saudi Arabia's parlous rights record has been under heavy scrutiny since the murder of journalist Jamal Khashoggi previous year . Some Saudi female runaways fleeing abuse by their families have been caught trying to seek asylum overseas in recent years.

With Trump in waiting, Kim courts China's support

Secretary of State Mike Pompeo said, "The Chinese have been very clear to us that these are separate issues". But a year ago , he visited China three times. "His arrival in Beijing , which coincided with Mr.

Isis missile strike injures two SAS soldiers in Syria

The SDF reported capturing two Pakistani citizens in addition to the two Americans and the Irish citizen taken into custody.

Four things we learned from Manchester City vs Liverpool

Meanwhile, Klopp admitted he may have to think outside of the box with his centre-back selections for the trip to Wolves. No, there was no reason [for him not playing recently], just because other boys were in good shape as well.

John Bolton makes US Syria withdrawal conditional on IS defeat, Kurds safety

He told CBS' "Face the Nation" that "the bottom line here is we want to make sure we get this right, that ISIS doesn't come back". President Trump announced in mid-December that the USA will withdraw all of its 2,000 forces in Syria.