Netflix Subscribers Are Practically Begging for Another Price Increase
Netflix (NASDAQ: NFLX) has become a staple in many households during the pandemic as consumers hunker down at home to avoid catching the virus. While the streaming leader already had a fair degree of pricing power, increased subscriber demand may empower the company to boost prices even further. In fact, it appears viewers are practically begging for it.
Jefferies analyst Brent Thill raised his price target on Netflix to $570 from $500. He believes the tech giant will raise the cost of its most popular monthly subscription plans by $1 to $2 per month in each of the company's biggest markets, generating between $500 million and $1 billion in additional revenue in 2021. While he concedes Netflix will lose some price-sensitive customers, the majority won't even blink at a price increase, due to its deep library of content and the ongoing stay-at-home economy.
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Source Fool.com
