Netflix Expected to Announce Price Increases as Q3 Earnings Loom
As Netflix prepares to release its third-quarter earnings on October 17, analysts are speculating that the streaming giant could soon announce price increases, particularly in the US market.
The move comes as Netflix faces tapering subscriber gains following its password-sharing crackdown and seeks to maintain its revenue growth trajectory.
Netflix has forecasted Q3 2024 revenue at $9.727 billion, up 14% from last year, with an expected earnings per share (EPS) of $5.10. While analysts anticipate solid financial results, many point to the company’s need for price hikes to offset challenges such as foreign exchange fluctuations and a plateau in new subscriber growth. Wall Street estimates Netflix will report an additional 4.76 million net subscribers for the quarter, including around 1 million from the US and Canada.
Price hikes are seen as a likely strategy, particularly since Netflix’s last significant US price increase in October 2023 left some plans unchanged. Analysts expect broader increases this time around, noting that the company’s ad-free competitors, such as Hulu and Max, already charge higher fees.
With input from Variety and the Hollywood Reporter.
