OnDemand WTP Pricing Research

Netflix May Raise U.S. Prices, While Testing Cheaper Plans Elsewhere | Variety

Netflix is gearing up to kick the tires on cheaper pricing plans in emerging markets outside the U.S. But at the same time, some on Wall Street think it has a growing amount of pricing power that could let it hike fees for American users.

In a research note Monday, Piper Jaffray analysts said Netflix is positioned to raise fees for its streaming service on a regular basis. That hypothesis is based on a survey conducted by the firm of about 1,100 U.S. Netflix users that found 71% said they felt content on the service has improved.

“We believe, as long as the vast majority of subscribers perceive that the service is improving, Netflix will be positioned to periodically increase price,” the analyst team led by Michael Olson wrote in a note. They added that if Netflix could get an additional boost if it lands Oscar nominations for its slate of upcoming originals films including Alfonso Cuarón’s “Roma,” the Coen Brothers’ “The Ballad of Buster Scruggs” and Susanne Bier’s “Bird Box.”

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Netflix May Raise U.S. Prices, While Testing Cheaper Plans Elsewhere – Variety.