![]() ![]() Meanwhile, the cable bundle quality is likely to decline in the coming years as most premium content gets pushed to streaming services. AT&T Now (formerly DirecTV Now) is either $55 or $80 per month. While there are cheaper digital alternatives, YouTube TV is $64.99 a month. The average cable TV bill is about $100 a month, according to LightShed Partners. Netflix's premium service is now $17.99 a month. Netflix's decision to become the cable bundle lite - excluding live events, news and sports - gives the company an excellent argument to raise rates from a price-value perspective. ![]() Only recently, after AT&T's takeover of Time Warner (and a new slate of executives), has HBO tried to emulate Netflix with HBO Max. While HBO made the decision to go direct to consumers as an a la carte application in 2015, HBO chief Richard Plepler focused on premium programming while actively shunning most other content. Ironically, HBO didn't want to become Netflix until quite recently, despite Sarandos's claim otherwise. And, sure, it's got HBO-style fare too - movies like "Roma," series like "The Crown," and "Sex and the City" knockoffs like "Emily in Paris." The full suite is similar to a cable bundle. Netflix has focused on a wide breadth of offerings, including animated kids' shows, breezy romantic comedies, Adam Sandler movies, reality shows like "Love is Blind," lowbrow documentaries like "Tiger King," food shows like "The Great British Bakeoff," and fun game shows like "The Floor is Lava." It's hard to imagine any of these series on HBO. Monthly churn for Netflix (near 2%) is far below that of other streaming services, such as CBS All Access (soon to be renamed Paramount+) and Starz, according to data from Antenna, a measurement and analytics company that tracks purchase behavior.īut that's not actually what Netflix has done. By that time, investors hope Netflix is an inexpungible staple in people's homes, much like cable TV has been for the last four decades.Įarly evidence suggests Netflix is on the right track. But Wall Street is counting on consistent price increases as customer growth wanes. The video streamer has largely been able to avoid significant price hikes because it has consistently added subscribers, giving investors a clear growth story. Netflix's last price increase was January 2019. It's why Netflix has a market valuation of $218 billion on just $2.8 billion of net income in the last 12 months. The company's decision to raise its standard plan by $1 per month, from $12.99 to $13.99, and its premium plan by $2 per month, from $15.99 to $17.99, is an essential part of Netflix's long-term strategy. ![]()
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