Taking a Look at Netflix’s Pricing Strategy | Market Realist

Netflix’s pricing plans
Analysts have long speculated that it would be better over the long term for Netflix (NFLX) to raise prices. Currently, in the United States (SPY), Netflix offers three price tiers with its “basic” plan priced at $7.99 per month while its “standard” and “premium” plans are priced at $9.99 and $11.99 each month, respectively. The company was asked during its fiscal 2Q17 earnings call whether it planned to raise the price of its “premium” plan or introduce new price tiers.

Netflix stated that, currently, it’s observing that more subscribers are opting for the “premium” price plan. As a result, the company doesn’t see the need to increase its prices or introduce new price tiers. Over the long term, Netflix sees its ASP (average selling price) growing in the mid-single digits.

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Taking a Look at Netflix’s Pricing Strategy – Market Realist.