Netflix Gets a Lot of New Subscribers but Experiences a Shares Fall
Netflix is the most popular online streaming service almost all over the globe. On Thursday Netflix forecast their first-quarter revenue. Even after a record quarter for new customers, the shares of Netflix dropped 4% in after-hours trading. Investors were probably hoping for more after the price hike for U.S. subscribers earlier this week by Netflix. Now let’s have a look at the price rise.
The price hike in Netflix Subscriptions in the US
The most popular plan of Netflix is $11 per month. This plan gives users access to HD streaming. But now this plan will cost users $13 per month. The most expensive plan for this service costs $14 per month. This plan offers 4K content and streaming on 4 different devices simultaneously. This plan will now cost $16 per month. The basic plan of this service which used to cost $8 per month will now cost $9 per month.
The release of the movie “Bird Box” in late December in Netflix attracted a record 8.8 million new paid streaming customers in the fourth quarter.
At first, Netflix was the only good option for users of western countries to enjoy movies and TV Shows. So Netflix got content from Disney and other huge productions. But now Disney has stopped supplying new content to Netflix for their very own streaming service. The competition in Online Streaming market is increasing a lot and at this point, the 4% drop in share prices might be the high time for Netflix to do something new to stay in the business.
Netflix is now trying to expand all over the globe and is also trying to create Netflix exclusive TV Shows and Movies to attract new customers to their service. Basically, their share for this quarter is as low as 30 cents per share due to higher spending in more original content and globalization of Netflix.