Netflix price hike could help raise $500M, but could also spark subscriber churn

Netflix is starting to raise rates on grandfathered subscription prices in the U.S. by as much as $2, from $7.99 or $8.99 to the current price of $9.99. That move could score the SVOD provider up to another $520 million per year in additional revenue, according to a Nomura Securities report.

That could go a long way toward offsetting the nearly $6 billion Netflix is spending this year on both licensed and original content. But the move could also end up costing Netflix about 480,000 U.S. subscribers, who might opt to jump ship instead of paying the higher cost, Nomura analyst Anthony DiClemente said in a research note reported by Variety.

FierceOnlineVideo has the entire report here.

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