After a year of holding firm on prices and a massive crackdown on password sharing, video streaming giant Netflix (NASDAQ:NFLX) is set to increase its prices in the coming months.
Last year, the company was the only big streaming platform not to raise its prices. Instead of driving customers away, Netflix said it would focus more on market share. But now, the company wants to turn back to profitability.
According to a Wall Street Journal report, the price increase will come after the ongoing actors’ strike ends. Earlier in June, Hollywood writers dragged studios to the negotiation table over labor disputes.
So far this October, negotiations between Studios and the actors’ union have yielded favorable results. At least, that is what the actors’ unions are peddling. Per the WSJ report, the Netflix price increase will likely take effect in the United States and Canada.
But Netflix isn’t the only one increasing prices. Close competitor Disney (NYSE:DIS) has announced an increase in ad-free streaming services on Disney+, Hulu, and ESPN. Similarly, Amazon (NASDAQ:AMZN) is adding ads and an ad-free tier to its Prime Video service next year.
What is the Fair Price for Netflix Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Netflix stock based on 18 Buys, 12 Holds, and one Sell assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $472.64 per share implies 24.87% upside potential.
