Thursday, Feb 28th 2019

Pricing Power in Action


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.

As of this writing, NFLX was a portfolio holding of Titan. This security may cease to be a portfolio holding at some point in the future.
Back to Research ↗

Learn with titan

Investment articles and resources

Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.

Russell 2000 vs. S&P 500: What Are The Main Differences?

How to Start Saving for Retirement in Your 30s

How to Invest in the Russell 2000

How to Build Wealth in Your 30s

Let's Get Started

Ready to become a client?

Create an account with us in two minutes.

Or scan to get the app

We're building the best investment platform, ever

Titan Global Capital Management USA, Inc ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept our Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings are for illustrative purposes only and are not investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members FINRA/SIPC. For more information, see our disclosures. Contact: 508 LaGuardia Place NY, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice. Check the background of these firms on FINRA's BrokerCheck.

© Copyright 2022 Titan Global Capital Management, Inc. All Rights Reserved.