Streaming Survey Boosts Netflix’s Market Cap By $34B

CHIANG MAI ,THAILAND - March 31, 2018 : Close up Netflix website in laptop screen. Netflix being popular internationally.
B&T Magazine
By B&T Magazine



A survey that asked respondents about how they intend to use streaming services after lockdown has seen Netflix’s shares soar 12 per cent.

This added more than $US25 billion ($35 billion) to the streaming service’s market capitalisation.

The study, conducted by finance company Piper Sandler, found that 41 per cent of Netflix viewers had plans to continue subscribing when lockdown measures are removed.

This was compared to 28 per cent of Amazon Prime Video subscribers and 17 per cent of Disney Plus viewers.

“We continue to believe Netflix is well-positioned to capture an outsized share of traditional content consumption dollars as that spending migrates to streaming,” Piper Sandler analyst Yung Kim wrote in a research note.

With almost half of its audience willing to tune in post-COVID, Piper Sandler’s research also suggests there could be a case for Netflix to introduce a price hike.

“In a separate survey of almost 600 people, we found that the majority of (Netflix) subscribers would absorb a price increase, with a weighted average price increase of $2.20/month,” Kim added.

Australian streaming service Stan is currently enjoying the benefits of a small price increase.

After raising prices by $2 per month in March 2019, Nine – the owner of Stan – last week revealed the service had increased its revenue by 54 per cent to $242.1 million for the year to June.




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