The movie streaming business is getting lots of competitions but there’s only one company which still dominating this business industry, and that’s Netflix. The media giant company is expected to release its fourth-quarter earnings soon, but experts believe that the company’s recent decision of raising the prices of its subscription plan will have an impact on the company’s Q4 earnings report. On Wednesday the tech giant company decided to raise the prices of its movie streaming platform and the new rates are now going to apply for all the users from the USA. Netflix has more than 58 millions of its users in the US only plus the majority of the company’s revenue comes from this region, and still, the company hiked the prices of its subscription plan. The report says that Netflix has spent most of its liquid funds on producing its own movies and TV shows and now to compensate that situation the company decided to hike the prices.
Many analysts believe that this decision of changing the prices of its subscription plan might be right for the company’s stock because the US users of Netflix can still afford the company’s services. According to some analysts, the company’s users base has been increased in the last year’s fourth quarter, and it is estimated that Netflix has added more than 1.8 million domestic subscribers to its platform. Netflix has been improving its platform at a faster rate because last year the company managed to produces more of its own movies and TV shows which states the company’s position.
RBC capital is very much optimistic about the company’s this move of hiking prices and they think it will bring more revenue to the company which will make the company’s position secure in the stock market.