Netflix Could Raise Prices Again Next Year
After Netflix (NASDAQ: NFLX) raised prices in early 2019, it was clear it was done raising prices for awhile. The influx of competition this year made it even more unlikely Netflix would ask subscribers for more money every month. And when COVID-19 hit, it became a near certainty.
But the value of Netflix may have never been higher than amid the pandemic. The company saw nearly 16 million entertainment-hungry consumers sign up for the service during the first three months of the year, and management forecast strong subscriber additions for the second quarter as well.
But Netflix could come out of 2020 well positioned to raise its pricing once again at some point in 2021, as it continues to offer better value than its competitors. Bernstein analyst Todd Juenger notes, "The increased engagement and appreciation for Netflix that a growing number of consumers are experiencing in 2020 could make it that much easier for Netflix to successfully pass through pricing increases in 2021-22."
Source Fool.com
