![]() ![]() Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account “This will give Disney+ cover to raise prices at some point,” he said.ĬNN Business’ Clare Duffy contributed to this story. Netflix is the king of streaming and the moves it makes, especially in terms of cost to the consumer, reverberates throughout the market.įor example, McTernan noted that Disney’s stock had a positive reaction following the announcement of Netflix’s pricing going up. “If we do that well… and make that efficiency and effectiveness better, we will deliver more value to our members, and we will occasionally go back and ask those members to pay a little bit more to keep that virtuous cycle of investment and value creation going.” “The core model we have, and what we think really our responsibility and our job is, is to take the money that our members give us every month and invest that as judiciously and as smartly as we can,” Greg Peters, Netflix’s chief operating officer, said on the call. NBC's Peacock nabs 22 million sign-ups, and that's without 'The Office' and the Olympics Move forward with the April launch of Peacock, its new streaming service? Or postpone? Photographer: Gabby Jones/Bloomberg via Getty Images Gabby Jones/Bloomberg/Getty Images When the coronavirus quickly spread around the world, NBC had a big decision to make. Peacock streaming service is displayed on a laptop computer in an arranged photograph taken in the Brooklyn Borough of New York, U.S., on Monday, April 20, 2020. Netflix was asked about raising prices during its earnings call last week. ![]() This came after Netflix had a huge 2020 because of people being stuck at home during the coronavirus pandemic. The news comes a week the company posted slowing growth in new subscriptions and lower-than-expected profits. “It shows they think people will be willing to pay more for the service as the pandemic disrupts content production thus making their vast library more valuable.” “The price increase was a matter of when not if,” McTernan told CNN Business. Netflix spends billions on content, and this is a way to boost revenue as the “outlook for subscriber growth is substantially slower in the future than the past,” according to Bernie McTernan, a senior analyst at Rosenblatt Securities. Netflix’s price hike, which was first reported by The Verge, is not a huge surprise. The spokesperson added that Netflix offers “a range of plans so that people can pick a price that works best for their budget.” “We’re updating our prices so that we can continue to offer more variety of TV shows and films.” “We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” a Netflix spokesperson said in a statement. The new prices will take effect starting immediately for new members while current members will be notified that their subscription is going up as it rolls out over the next few months. (NFLX)’s stock rose 5% following the news. Its basic plan remains unchanged at $9 a month. Its premium subscription will go up $2 to $18 a month. Its standard plan is now $14 a month, up $1 a month from last year. The streaming media company is raising the prices on its standard and premium plans for US customers. ![]()
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