After deinhabitring a firm third-quarter getings inestablish, Netflix execs fielded the ask top of mind for most allotors (though definitely not for inflation-wracked subscribers): When will they elevate prices in the U.S.?
“Our approach to pricing has been relabelably reliable over many, many years,” Co-CEO Greg Peters shelp. “Our core theory is, we’ve got to labor reassociate, reassociate difficult to create certain we are deinhabitring more appreciate to members every quarter. Then, we assess based on how that’s going, thraw metrics enjoy comprisement, acquisition and retention, did we do a outstanding job there? How we actuassociate deinhabitr that promise of more appreciate. If we do, then we occasionassociate ask members to pay a bit more, so we can allot that forward and sustain that whole process going.”
Peters deinhabitred the comment during a video call centered on the quarterly results. In a recent establishat shift, Netflix made the video call a inhabit event and ditched the previous setup, in which an analyst would mild the call and ask asks. Instead, allotment relations chief Spencer Wang directs the call, citing analysts who have surrfinisherted asks and reading them aboisterous.
In teeing up the ask about pricing, Wang shelp it came from Rich Greenfield at Lightshed Partners, one of three references to him during the call. Greenfield in particular wondered why the company wouldn’t shift to raise prices in the coming weeks given the strength of its encountered stardy at the end of 2024 and heading into 2025.
As other execs chuckled at the topic of pricing being elevated, Peters combineed in the chuckleter and joked that “We’re going to seek Rich to combine our pricing pledgetee.” CFO Spence Neumann tardyr quipped he had “hushed” for a stretch of the call because he was busy “getting off the pricing pledgetee” to create room for Greenfield.
Peters also alluded to “a couple of countries” where the company has upped rates.
In its quarterly letter to allothgreaterers joining the financials, Netflix noticed that it recently elevated prices in a restricted countries in the EMEA region as well as Japan. Starting tomorrow, it compriseed, prices are going up in Spain and Italy.
