Netflix (NFLX.US) performs well in sports livestreams, so it may raise subscription prices, UBS released a report.
Netflix's All American Football League (NFL) game airs on Christmas Day with an average viewership of about 24 million in the United States, with viewership far outpacing Amazon's (AMZN.US) Thursday Night Rugby on Prime Video this season, UBS said. While the viewership is lower than the streaming rate, the channel believes Netflix has the ability to get more sports coverage over time, paving the way for further price increases while boosting advertising revenue.
UBS said that Netflix's standard U.S. plan has not been priced since early 2022, meaning pricing based on historical changes in the ad-free plan is expected to generate about $1 billion in annual revenue and pre-interest profits, giving Netflix a “buy in” rating with a target price of $1,040.
