Netflix Increases Price for its Online Streaming Service

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WCD Times – Stock and share price rose too high of the day in Wall Street after Netflix announced it is raising its monthly subscription plan by 13% to 18% from today. This is the fourth time Netflix is increasing its monthly subscription fee. As of now, its a increase only in US. It may or may not be seen in other countries any time soon.

Wall street talking it show how the company is passionate to on becoming more and more like a business now, Goldman Sachs analyst Heath Terry hiked his price target to $420 from $400.

Stifel analyst Scott Devitt headlined with, “We are bullish on the company’s ability to execute the pricing increase, though note in the near-term, domestic subscribers churn may tick up as the company introduces the new pricing levels to existing members. … We see the potential for cautious 1Q guidance on domestic paid net subscriber additions due to this factor … In the U.S., Netflix’s new pricing compares to HBO NOW at $14.99 per month and Hulu’s ad free product at $11.99. We believe it is possible Netflix will continue its recent pace of domestic price increases (every 16-18 months), as its Standard plan is still $2 below HBO’s product with a significantly larger content offering.”

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