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Technology Stocks : Netflix (NFLX) and the Streaming Wars
NFLX 109.42-4.1%2:45 PM EST

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J.B.C.
To: JakeStraw who wrote (996)4/22/2014 4:22:06 PM
From: ChrisGillette1 Recommendation  Read Replies (1) of 2280
 
<<On Pricing, Netflix Has Cushioned The Blow, But It Can Go Even Further>>

IMO Netflix has lots of flexibility and can increase prices from $7.99/month all the way to $9.99/month without a problem as there's simply no serious streaming alternative. Given its nearly 50 million subscriber base, each $1 increase will translate into $600 million of additional cash flow which can be used to acquire even more content, which in turn will attract more subscribers, etc.

The bigger question IMO is how much will NFLX benefit when Amazon throws in the towel on streaming/SVOD?
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