Meanwhile, Netflix is the “main beneficiary of structural changes in media,” the analysts wrote in the note. The analyst firm estimates Netflix’s price per hour of consumption at about 30 cents/hour on ad-free tiers, versus 56 cents/hour for Hulu, 58 cents/hour for Peacock, 73 cents/hour for Disney+ and 81 cents/hour for both Max and Paramount+. And Netflix currently has strong pricing power relative to other streaming services, because on average its prices are lower than rivals on a per-hour basis, according to UBS. TV viewing rose to 7.9% in January 2024, up from 7.7% in December. In outlining the bull case for the streamer, UBS cited Nielsen data showing Netflix’s share of U.S. VIP+ Analysis: Netflix Won Streaming in 2023 - Now What? Shares of Netflix were up 1.5%, to over $596 per share, in midmorning trading Tuesday. In the note, the UBS team raised their 12-month price target on Netflix shares from $570 to $685 per share, maintaining a “buy” rating on the stock. So, you know, the summary statement might be, ‘Back to business as usual.'” Peters continued, “We will continue to monitor other countries and try and assess… when we’ve delivered enough additional entertainment value” to “ask to pay a bit more to keep that positive flywheel going and we can invest in more great films, series and games for those members. Those changes went well better than we forecasted.” And price increases, you’ve seen us do that in the U.S., U.K. Now that we’re through that, we’re able to resume our sort of standard approach toward price increases. On the company’s Q4 2023 earnings call, Netflix co-CEO Greg Peters noted that last year the streamer had “largely put price increases on hold” while it was rolling out the paid-sharing program - “because we saw that as a form of substitute price increase.
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