Thursday, Feb 28th 2019
It might not have taken home Best Picture at the Oscars, but it certainly can take pricing.
On Thursday morning, reports emerged from Italian tech news outlet SmartWorld that Netflix is exploring price hikes in Italy for a select portion of its audience there.
This comes just one month after Netflix's announcement of a similar price hike in the U.S. Recall in January, Netflix raised U.S. prices by roughly ~13-18% across all three of its price tiers.
This time around, it's keeping prices flat in its lowest tier, but is doubling the increase on its premium tier from ~14% to over 28%.
Price hikes, if successful, can be very financially impactful for businesses, as they "drop straight to the bottom line" and can uplift margins dramatically.
As we've highlighted before, we believe Netflix is still in the very, very early innings of its longer-term pricing strategy (head to our Initiation Report for more).
While it remains to be seen how this particular price increase will be received and whether it will be deployed more broadly across international markets, we see this move as continued evidence of Netflix's measured, tactical approach to pricing within its broader content-first strategy.
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