The club of companies worth over $1 trillion is likely to welcome another giant in a few years. Specifically, we are talking about Netflix, which has an ambitious plan in mind in the form of doubling its revenue, thanks to which it will reach a market value of $2030 trillion by XNUMX. So, in a way, this is a goal that it once set itself Apple and which it has successfully achieved (or is achieving even with smaller projects such as increasing profits from services), and which is now heading into the world of streaming services. Although Netflix has not yet officially released its plan as a forecast, internal goals have been leaked to the media and confirm that the company's management is thinking big. And that could be quite interesting from an investment perspective, which you can learn more about here at XTB.
Unfortunately, Netflix, in its pursuit of higher value, doesn't have many options left to achieve this. It's quite difficult to attract new users, and revolutionary content is hard to come by. We're probably going to have to wait for more waves of subscription price hikes. While Netflix is currently worth around $479 billion, it wants to double its revenue and triple its operating profit by 2030. Officially, the company talks about "long-term visions," but if it wants to achieve them in the foreseeable future, it's clear that subscription prices will have to go up.
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After all, history shows us that Netflix is not afraid of this. The premium plan has increased in price in the US from $2015 to $11,99 per month since 24,99, without a dramatic decrease in subscribers. The introduction of a fee for account sharing did not result in any major outflow, even though Netflix was extremely criticized for this step at the time of implementation.
However, it will not only be the higher subscription price that will help the company in terms of value by a lot. In addition to raising prices, Netflix also wants to strengthen its advertising model, expand into new markets, and add new services, such as mobile games. It can take inspiration from YouTube or Spotify, which combine advertising, subscriptions, and additional content. Just releasing the tariff with ads could ultimately increase its value significantly, as this would varianta could attract a lot of new users thanks to its low monthly subscription. It is all the more surprising that the tariff with ads is currently only available in the USA.
While an American user pays $7,99 per month for the cheapest tariff with ads, Standard already costs $17,99 and Premium $24,99. And it will get worse – Europe will not avoid price increases either. The only “consolation” may be that with higher prices, Netflix will at least start trying to add new valuable content – otherwise the user’s patience threshold will become thinner and thinner, which the service logically cannot afford.
It certainly won't come out of my pocket. I haven't had Netflix for a while and I don't miss it. Now I have Oneplay and sometimes Max.