Netflix

[Guest]

Netflix is raising prices on its subscription service for the first time since 2015. Investors asked “what took so long?” sending its stock up 5% to a record high of $193.86—a much warmer response than when it jacked up prices 60% in 2011 and lost 800,000 U.S. subscribers. 

Here are the brand new monthly bundles: 

• $7.99 for low definition on one device at a time—no change
• $10.99 for HD on up to two devices at a time–up $1.
• $13.99 for 4K access on up to four devices at a time–up $2.

Despite the bump, Netflix’s 104 million subscribers shouldn’t fly the coop. The streaming provider is still cheaper than HBO’s ($14.99) and Hulu’s ($11.99) similar offerings. 

It’s also keeping viewers hooked by pouring $6 billion into original programming and signing exclusive deals with A-list celebrities like David Letterman and Chris Rock (it’s even giving Adam Sandler another go after Jack and Jill).

[Guest]

Once again, Reed Hastings is proving that Netflix & Chill is a global epidemic. Even with half of the population stealing their uncle’s account for a helping of Narcos, Netflix still has 109.3 million subscribers. And its Q3 performance goes to show that despite a Roku IPO or Disney’s content pull, everyone’s favorite streaming service is just as binge-worthy as ever:

• $2.98 billion—revenue beat estimates, and so did EPS (37¢ per share versus 32¢).
• 850,000—number of subscribers added in the U.S. (expectations: 750,000).
• 5.3 million—number of subscribers added worldwide, topping expectations of 4.4 million.
• $202.68—Netflix’s stock price at the closing bell…a record high.
• $7-8 billion—Netflix’s content budget for next year. This year it spent $6 billion.