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Netflix Raises Subscription Prices in Germany and Austria
Netflix (NASDAQ:NFLX) announced on Friday it is raising prices for its subscription plans in Germany and Austria, impacting what analysts at Citi estimate to be about 6% of the company's total global subscribers.
The New Pricing Structure
The price adjustments vary by country and subscription tier. According to the announcement:
- In Germany: The ad-supported plan will increase to €6.99 from €4.99, the Standard plan will rise to €15.99 from €13.99, and the Premium plan will now cost €21.99, up from €19.99.
- In Austria: The Basic plan will increase to €10.99 from €8.99, while the Standard and Premium plans will see the same increases as in Germany, rising to €15.99 and €21.99, respectively.
Analyst Estimates on Revenue Impact
In a note to clients, Citi analysts projected that the new pricing could significantly boost the company's average revenue per user (ARPU) in the region. They estimate a 24% ARPU increase in Germany and a 15% increase in Austria.
AdOn a broader scale, Citi forecasts the changes will lead to an approximate 4% increase in ARPU for the Europe, Middle East and Africa (EMEA) region and a 1.5% lift in company-wide ARPU. The bank maintained its Buy rating on Netflix with a $100 price target.
Regulatory Hurdles May Delay Impact
A key factor for investors to watch is the rollout timeline, which could be extended due to local regulations. Consumer protection laws in both Germany and Austria require companies to obtain affirmative consent from existing subscribers before a price increase can take effect.
Citi noted this requirement may result in a longer implementation period, potentially delaying the full financial benefits of the price hikes into fiscal year 2027. The analysts pointed to a similar situation in August 2025 when Spotify gave subscribers in the same markets 90 days to accept a price change.
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