Netflix shares news: Netflix shares jump after monthly subscription hike
Netflix shares have jumped after the company announced its US subscribers will see a 13% and 18% rise in monthly subscription fees.
Netflix shares jumped on Tuesday, after announcing it will hike US monthly subscription fees upto 18%.
2019 will see the video streaming giant implement its first price increase since 2017, with monthly fees for its standard plan increasing to $12.99 per month from $10.99.
Top-tier plans are increasing to $15.99 per month from $13.99, and its basic plan will rise only one dollar to $8.99 from $7.99.
The price hike comes after, Comcast’s NBC Universal announced on Monday that AT&T and Walt Disney are preparing to launch their own streaming services to take on Netflix, with an estimated 25 million subscribers.
Wall Street rises with help from Netflix
Wall street rose on Tuesday with the help from Netflix shares.
Netflix jumped 6.5% after the video streaming company announced its hike. Alphabet, Amazon.com and Apple shares also rose following the announcement.
The S&P 500 communications services index climbed 1.7% and S&P 500 technology stocks jumped 1.5% upon the news.
Netflix shares price has risen 30% so far this year.
Netflix Q4 earnings expectations
Netflix is scheduled to report its Q4 results after market close on Thursday and is expected to report a 28% increase in revenue of $4.2 billion from its $3.29 billion a year ago, according to analysts.
The rise in subscription fees come as part of its planned billion-dollar spend to attract more customers. The company reported the price hikes are expected to make the company hundreds of millions of dollars.
Netflix is investing in streaming award-winning shows to have the monopoly over competitive players such as Amazon’s Prime and Hulu.
Analysts predict Netflix will remain the top streaming services, with an estimated 137 million subscribers.
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