Netflix users could experience a price hike this year as the company continues its plans to accelerate and boost the streaming platform, according to UBS Securities analysts.
Research revealed a big chance for an increase in subscription plans for the year to push Netflix's growth to 15%.
Netflix Users Might See Another Price Hike
In the study by UBS, researcher John Hodulik wrote that rate increases are likely to happen this year. In addition, he also stated that the possible price hike could ramp up the revenue for the ad-supported tier and the overall company growth.
During the Q4 2023 earnings call, Netflix co-CEO Greg Peters shared that the company paused its price increases after it launched the paid-sharing program.
"Now that we're through that, we're able to resume our sort of standard approach toward price increases," he added.
Last October, Netflix announced a $2.99 price hike for its basic plan in the U.S., making it $11.99 per month from $9.99. The increased subscription prices were also implemented in the U.K. and France.
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Netflix Continues as Strong Streaming Platform, Analysts Say
The UBS data showed that Netflix's viewing rate rose from 7.7% to 7.9% in January 2024. Moreover, the company retains its influential status among other platforms due to its strong pricing compared to other services.
The analyst firm estimated that Netflix charges about 30 cents per hour on ad-free tiers, much smaller than the 56 cents per hour charge for Hulu, 58 cents for Peacock and 73 cents for Disney+.
"While we expect net adds to slow, we believe Netflix still has significant runway as it continues to convert users to paid subs and attracts new cohorts," the analyst wrote.
Netflix shared that the company is currently monitoring and assessing the entertainment value of its content before announcing a possible price increase.
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