The investment bank’s analysts foresee an increase in service rates due to its cost in relation to the time of use.
The stipulation of Netflix The stock market is in one of its best moments. But the analyzes of analysts of the investment bank UBS Securities They foresee a increase in subscription of service that will worry users and excite investors. This increase would contribute to improving the company’s turnover by 15%.
UBS states in its research: “we expect to see rate increases in that year.” They defend their vision behind the solid foundation of Netflix users and its previous rate increases that were made immediately. One of them was last year in the United States, when the basic plan went from 10 to 12 dollars.
For analysts, Netflix’s imminent increase would come hand in hand with the estimate of the increase in its shares from $570 to $685. This growth began to be noticed after the disclosure of its investigations and the company’s shares reached $600.
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Netflix averages 30 cents per hour, more than half that of Disney+, which follows with 73 cents.
Netflix would increase the price of its plans again for this reason
He co-CEO of the streaming platform, Greg Peter, had acknowledged that increases would dry up until strategies that prevent account sharing took hold. The moment arrive. The new rules proved to be a success, following a high user adoption rate.
The main reason indicated by UBS Securities is that it considers Netflix to be the service that has the lowest cost based on the average hours consumed. Although they only analyze the US market, the platform maintains an average of 30 cents per hour. The figure is half the value of its competitors.
If the increases do not significantly affect the growth of users, the investments of Netflix would produce returns that would be around 20% at a compound annual rate.
Netflix Argentina: plan prices in March 2024
Below, we detail the sums of the 6 Netflix subscription options for the current month, plus their respective taxes:
- Basic Service: $4,073.37 pesos
- Standard Service: $6,844.77 pesos
- Standard Service + 1 extra house: $9,124.74 pesos
- Premium Service: $9,452.37 pesos
- Premium Service + 1 extra house: $11,588.78 pesos
- Premium Service + 2 extra houses: $14,013.11 pesos
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
