✔️ 2022-10-14 10:10:58 – Paris/France.
©Reuters.
Investing.com – The shares of Netflix (NASDAQ:) ended with a solid drop of 5,27%, thanks to a spectacular increase in the market after an initial reaction against the IPC estadounidense, pero también debido a significant anuncio de the company.
Netflix announced on November 3 the launch of its long-awaited ad-supported subscription service.
The price for the “Basic with ads” subscription will be $6,99 per month, which is $13 less than the Premium plan and $7,99 less than the Disney+ subscription with ads. Netflix added that its ad-free plans will not be affected and will remain at the same price.
Netflix subscription with ads will launch sooner than expected
Basic with Ads will be available in 12 countries, including Germany, Australia, Brazil, Canada, Korea, Spain, United States, France, Italy, Japan and Mexico.
The giant of Streaming said there will be an average of four to five minutes of commercials per hour, while a limited number of movies and TV shows will be unavailable due to licensing restrictions, which the company says it is working on. Each ad will run before, during and after shows and movies and will be 15 or 30 seconds long.
Netflix had previously announced that its ad-supported component would be available in early 2023. For this reason, investors yesterday welcomed the advancement of the schedule, which will allow the success of this formula to be judged as soon as the results for the fourth quarter of 2022 are published. .
"Although it's still early days, we are pleased with the interest from consumers and the advertising community," Netflix said in its press release. “As we learn from this experience and improve it, we plan to launch it in more countries over time. »
Analysts are not convinced, but valuation models point to +41,6%.
However, analysts do not seem convinced. Of the 42 analysts who track the stock, only 16 recommend a buy rating, 21 have a neutral rating and 5 recommend a sell rating.
Additionally, these analysts' 12-month average target is $252,75, which is a potential upside of just over 8% from last night's closing price.
Finally, financial models are more optimistic, as shown by InvestingPro's Netflix Share Fair Value, which summarizes several recognized valuation models. It stands at $329,17, an upside potential of 41,6%.
SOURCE: Reviews News
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