Finance & BusinessStreaming

Netflix’s Sports Strategy May Push Subscription Fees Up

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Netflix (TV)

Netflix might increase its live sports content to boost its advertising business, but this could lead to higher subscription prices, according to UBS analyst John Hodulik.

He suggests that Netflix may raise prices to match the higher usage of its service due to live sports. Co-CEO Ted Sarandos has tied future price hikes to increased engagement through major live events.

Netflix has not raised its Standard U.S. plan price since early 2022, and a price increase could bring in an additional $1 billion annually.

Netflix’s stock recently dropped 1% to $891.32, but it is still in a bullish pattern with a buy point of $941.75.

The company reported strong viewership for its Christmas Day NFL games, with nearly 65 million U.S. viewers and millions more globally.

Analysts believe Netflix’s $75 million investment in the games, along with the exposure for other content like Squid Game, could lead to more subscribers.

Netflix has also secured the U.S. rights to broadcast FIFA’s Women’s World Cup in 2027 and 2031, expanding its sports offerings.

Written by
Sazid Kabir

I've loved music and writing all my life. That's why I started this blog. In my spare time, I make music and run this blog for fellow music fans.

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