Wall Street analysts are hesitant to place too much weight on Netflix's subscriber miss, because the second quarter is usually a slower period for the streaming company; itBut with new subscriptions on the way from big brands like Disney and WarnerMedia, the weak quarter is raising questions among Wall Street analysts and industry researchers about how much pricing power Netflix has left.
The company said it had"elevated churn rates and lower retention," — basically, more cancellations — during the quarter in places where it hiked prices. That would've included the US, where a $1-$2 price bump for each of Netflix's three plans rolled out to some existing subscribers.
It costs more than the $6.99 per month Disney Plus will, come November. But it's likely less than HBO Max will cost. in the US, it'll need to prove its service is magnitudes more valuable than its cheaper competitors. Netflix isn't going to stop raising prices, the experts say. But it'll have to be more cautious when it does so, and bank on its original content slate to keep people around.
But if Netflix can turn its free-cash-flow deficit around, as it plans to start doing by 2020, it may be under less pressure to raise prices, Amobi, at CFRA Research, said."My sense is they might not be compelled to raise prices as frequently as they might've needed to before they turned cash-flow positive," he said.
Let netflix choke on their greed
Many people have walked away due to overwhelming political themes in their programming. I see conservatives complain about it often. Nobody from any party wants political views they feel are toxic shoved down their throats while paying to be entertained.
they have some good shows but not enough to justify a price rise
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Reuters - 🏆 2. / 97 Read more »