UBS Group released a report stating that Netflix is performing well in Sports live broadcasts, and therefore may raise subscription prices.
UBS Group stated that the NFL games will be broadcasted on Christmas Day, attracting an average viewership of about 24 million in the USA, significantly surpassing Amazon's (AMZN) Thursday Night Football on Prime Video this season. Although the ratings are lower than broadcast ratings, the firm believes that over time, Netflix has the capability to acquire more sports broadcasting rights, paving the way for further price increases and enhancing advertising revenue.
UBS Group stated that since early 2022, the standard US plan of Netflix has not increased in price, indicating that increases based on the historical changes of the ad-free plan are expected to bring in about 1 billion dollars in incremental annual revenue and EBITDA, giving a 'Buy' rating with a Target Price of 1040 dollars.