Investment research company Jefferies believes a rate increase for the streaming service offered by Netflix may be imminent. Specifically, analyst Brent Thill wrote a piece this week suggesting a price hike is “probable in the near to mid-term.” Depending on which markets it imposes higher prices, the move could bolster 2021’s top line by hundreds of millions of dollars. Some of Thill’s scenarios for what monetary effect such a price hike would create suggest it could translate into annual revenue growth on the order of $1 billion. Not bad.
Of all the times for Netflix to raise prices though, now isn’t it.
Overcoming previous price increases
Netflix’s past price increases have been met with mixed results. The company’s 2016 rate increase was followed by a near-stagnation of its previously hot U.S. subscriber growth during the second and third quarters of that year. Its 2017 price increase, on the other hand,