Netflix price hikes won’t chase away consumers, says analyst
Netflix investors have no need to fear the upcoming price increases as a recent survey showed a ‘very satisfied’ customer base
New York — Netflix investors may be cautious as price increases begin to come into effect for existing customers, the majority of its 60-million US subscriber base. But recent checks suggest little churn for the streaming service. While no one show drives consumer demand, user sentiment is “very positive for Netflix as it shows a subscriber that is very satisfied, hardly churns and is quite comfortable with the upcoming price hike,” writes Michael Nathanson, founding partner of MoffettNathanson, in a note citing the firm’s survey of more than 500 people in the US. Shares of the company have risen 55% since a rout on December 24, despite falling for a second day on Monday. The depth of Netflix’s library appears to provide something for everyone, and for Nathanson, that confirms “viewership is spread over a long tail of content”. And this is “what makes the service so special — and what others may be missing,” he concludes, while reiterating the firm’s neutral rating and $275 price ta...
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