Netflix has raised the price of its most popular streaming plan by 63% in the past eight years without suffering any meaningful pushback from subscribers. In fact, an analysis by The Information of its quarterly results shows growth has temporarily spiked after two of the price increases—the opposite of what would be expected.
That suggests Netflix has the power to continue raising prices without tamping down on subscriber growth, at least for a while. That’s good news for investors worried about the company’s long-term sustainability. But as Netflix gets more expensive, subscribers are likely to scrutinize the value of its programming more closely—particularly as competing offerings from companies such as Disney launch later this year.