Netflix Price Hikes: Top Execs Offer U.S. Outlook During Q3 Earnings Call

After delivering a solid third-quarter earnings report, Netflix execs fielded the question top of mind for most investors (though definitely not for inflation-wracked subscribers): When will they raise prices in the U.S.?

“Our approach to pricing has been remarkably consistent over many, many years,” Co-CEO Greg Peters said. “Our core theory is, we’ve got to work really, really hard to make sure we are delivering more value to members every quarter. Then, we assess based on how that’s going, through metrics like engagement, acquisition and retention, did we do a good job there? How we actually deliver that promise of more value. If we do, then we occasionally ask members to pay a bit more, so we can invest that forward and keep that whole process going.”

Peters delivered the comment during a video call focused on the quarterly results. In a recent format shift, Netflix made the video call a live event and ditched the previous setup, in which an analyst would moderate the call and ask questions. Instead, investment relations chief Spencer Wang leads the call, citing analysts who have submitted questions and reading them aloud.

In teeing up the question about pricing, Wang said 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 move to boost prices in the coming weeks given the strength of its content slate at the end of 2024 and heading into 2025.

As other execs chuckled at the topic of pricing being raised, Peters joined in the laughter and joked that “We’re going to invite Rich to join our pricing committee.” CFO Spence Neumann later quipped he had “quiet” for a stretch of the call because he was busy “getting off the pricing committee” to make room for Greenfield.

Peters also alluded to “a couple of countries” where the company has upped rates.

In its quarterly letter to shareholders accompanying the financials, Netflix noted that it recently raised prices in a few countries in the EMEA region as well as Japan. Starting tomorrow, it added, prices are going up in Spain and Italy.