There are already many tech companies that have reached $1 trillion in valuation in the present, including Apple and NVIDIA, but now Netflix wants to join the club. Even as the world's top streaming platform, the company has "only" managed to reach below the half-a-trillion mark.
Of course, one of the simplest ways Netflix could reach this massive milestone for the company is to raise subscription prices among users.
Netflix Wants to Achieve $1 Trillion Valuation
The Wall Street Journal reported that Netflix is planning a massive shift in their business to achieve a new goal of doubling its valuation come the start of the next decade. Netflix is currently sitting at below $500 billion in valuation, but the company wants to reach $1 trillion in the next five years, as well as doubling its revenue by 2030.
Only a few companies have successfully pursued and achieved this goal. According to 9to5Mac, Apple envisioned its trillion-dollar dream and eventually made it a reality.
Five Years of Price Increases on Netflix?
There are many ways Netflix could possibly achieve its two goals and come out stronger than ever, but they are likely going to include price increases. Not only would price increases help double Netflix's valuation, but it would also mean more revenue for the company, and possibly, also accomplishing its second goal.
However, should the company start now, this would mean that the next five years until 2030 would feature subscription price increases for its global users. That being said, reports claimed that previous price increases did not matter for Netflix as it continued to grow despite the more expensive tiers.
Streaming Subscription Increases
This day and age of subscriptions has shown that the more users want more content, the greater the cost would be, as many streaming platforms have since effected price increases to grow what they have to offer. For this year alone, Netflix has gone ahead to effect a price increase to its subscription model at the start of 2025, and it asked for as much as 16 percent for its most expensive tier, Premium.
It follows the recent price changes on subscription models from multiple streaming platforms last year, with its top rival and the third largest streaming platform, Disney+, also asking for more in its different tiers including bundles. Other OTT platforms also followed suit including the likes of Paramount Plus, Max, Peacock, and more which hiked its prices in exchange for more content.
Netflix is 'shooting for the stars' that is a $1 trillion valuation by the start of the next decade but could be at the expense of its subscribers.
Originally published on Tech Times
