So while most are still giddy over streaming giant Netflix’s (NFLX) impressive returns, Netflix is not content to rest on its shockingly well-padded nest egg. In fact, it has announced plans to hike prices once more. Investors are quite enthusiastic, and shares are up over 10% in Wednesday afternoon’s trading.
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A report from The Verge spelled out the price hikes. The cheapest plan, with ad support, will go from $6.99 to $7.99. The lowest ad-free tier, meanwhile, will go from $15.49 to $17.99, and the premium tier will go from $22.99 to $24.99 per month, with all price hikes to take effect as of the next billing cycle, the report noted.
Not everyone will see these hikes; the United States and Canada will, as well as Portugal and Argentina. As for reasons, a letter to investors noted that Netflix’s ongoing “…invest(ment) in programming and deliver (ing) more value…” requires it to “…occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.” Given that Netflix last hiked prices in October 2023, the report noted, it may well have been time.
Staying Out of Theaters…Mostly
For anyone hoping that Netflix might stop turning to its members for more money and instead get that cash from theatrical exhibition, sorry, but that plan is not to be. Yes, Greta Gerwig’s Narnia will be making an appearance in IMAX theaters starting Thanksgiving Day 2026, but—noted a report from The AVClub—that is not to be interpreted as a sign Netflix is reconsidering the pursuit of big box office numbers.
Netflix, noted its co-CEO, plans to continue its “…core strategy…to give our members exclusive first-round movies on Netflix.” As for the Narnia release play, that is just “…a release tactic…to qualify for awards, to meet festival requirements and to prime the publicity pump a bit.” So no, cheaper Netflix on the back of big box office wins will not be a play here.
Is Netflix Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 20 Buys, seven Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 95.27% rally in its share price over the past year, the average NFLX price target of $986.46 per share implies 3.08% upside potential.
