Will Netflix's Latest Price Increase Go Over Better Than the Last?
Netflix (NASDAQ: NFLX) raised the price for U.S. and Canadian subscribers last month, adding an extra $1 or $2 to most subscribers' monthly bills. When Netflix last raised prices, early last year, it saw its first quarter of subscriber losses since the Qwikster fiasco in 2011. Investors are hoping the company can avoid a similar fate in the fourth quarter.
There are several factors working against Netflix in the fourth quarter that could lead to subscriber losses in the U.S. and Canada (UCAN) region.
First of all, there are a lot more big name competitors. Walt Disney (NYSE: DIS), Comcast's NBCUniversal, and AT&T's (NYSE: T) WarnerMedia are all competing for viewers with premium video. That also means their content is leaving Netflix in quick order, something that was just starting in early 2019. What's more, consumers have shown a growing interest in the improving selection of ad-supported video services.
Source Fool.com
