A report from investment bank Jefferies on Netflix says that 90 per cent of the streamer’s Indian subscribers would pay at least an extra $1.32 per month, and thus generating a future potential beneficial revenue tail wind for APAC revenue growth.
Indeed, the Jeffries survey shows 35 per cent of India respondents would happily pay up to an extra $2.34 per month for Netflix.
Jefferies, in its report to clients, says that it expects Netflix to raise fees “in the near to mid-term” by $1-$2 in North America and Europe without a material impact on churn. It suggests that Netflix is employing a pricing strategy with rises every (about) two years.
Netflix could generate another $500 million – $1 billion in revenue as a result of a North America/Europe price rise which would likely result in a share price target to about $570 per share (Netflix share price on October 2nd closed at $503 per share).