Netflix (NFLX) has no plans to increase US subscription prices yet, despite streamers from Disney+ to Peacock all increasing their respective prices this year.
“We try to think about our pricing not in relation to competitors, but in terms of the value we deliver 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’s healthy.”
The company exceeded Q3 expectations across the board, adding more than 5 million additional subscribers in the quarter. As a result, the stock rose 11% on Friday, lifting shares to a new all-time high above $760.
Wall Street analysts have noted that a near-term price increase would be a positive catalyst for the stock, especially after the latest semi-annual viewership report showed that subscribers watched more than 94 billion hours on the platform from January to June.
“Given Netflix’s low cost per hour watched, we see room for the company to increase U.S. prices by 12% through 2025,” Citi analyst Jason Bazinet said in a note to clients ahead of the report.
Netflix last increased the price of its standard subscription in January 2022, raising the monthly cost to $15.49 from $13.99. At the same time, it increased the price of its Premium tier by $2 to $19.99 per month; the company raised the cost of that plan again last October to $22.99.
The company recently phased out its cheapest ad-free streaming plan, making the $15.49 Standard plan the cheapest offering for an ad-free experience.
Netflix has priced its ad-supported offering, which was introduced less than two years ago, still one of the cheapest ad plans among all the major streaming players at $6.99 per month.
“We love the low price and increased accessibility that comes with our advertising plan,” said Peters. “It represents incredible value.”
Netflix, which has increased the prices of its plans in countries such as Scandinavia and Japan, said Thursday that it plans to increase prices in Spain and Italy as well.
Regarding the US, the company said it will continue to look at metrics such as engagement, acquisition and retention to assess the best value for consumers.
“We will continually look to offer consumers a range of subscription choices, the right features at the right price, and evaluate and evolve that 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.
