Netflix (NFLX) isn’t planning on hiking its US subscription prices just yet, despite streamers from Disney+ to Peacock all raising their respective prices this year.
“We try to think about our pricing, not in relationship to competitors, but from the value that we’re delivering to members,” Netflix co-CEO Greg Peters said Thursday during the company’s third quarter earnings call. “We want to have a range of price points. We think that that’s healthy.”
The company beat Q3 expectations across the board, adding another 5 million-plus subscribers in the quarter. The stock surged 11% on Friday as a result, lifting shares to a fresh all-time high of above $760.
Wall Street analysts have noted a price hike would be a positive catalyst for the stock in the near term, especially after its latest biannual viewership report showed subscribers watched over 94 billion hours on the platform from January to June.
“Given Netflix’s low cost per viewed hour, we see scope for the firm to raise US prices by 12% in 2025,” Citi analyst Jason Bazinet said in a note to clients ahead of the report.
Netflix last raised the price of its Standard plan in January 2022, upping the monthly cost to $15.49 from $13.99. It also raised the price of its Premium tier by $2 to $19.99 a month at the same time; the company again raised the cost of that plan last October to $22.99.
The company recently phased out its lowest-priced ad-free streaming plan, making the $15.49 Standard plan its cheapest offering for an ad-free experience.
Netflix has yet to raise the price of its ad-supported offering, introduced less than two years ago, which remains one of the cheapest ad plans among all of the major streaming players at $6.99 a month.
“We love the low price point and increased accessibility that comes with our ad plan,” Peters said. “It represents an incredible value.”
Netflix, which has raised the prices of its plans in countries like Scandinavia and Japan, said Thursday it plans to increase prices in Spain and Italy as well.
In regards to the US, the company said it will continue to look at metrics like engagement, acquisition, and retention in order to assess the best price point for consumers.
“We’ll continually try to offer consumers a spread of plan choices, the right features at the right price point, and evaluate that and evolve it based on what we think works,” Peters said.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance.
