August 25, 2020
Wall Street’s love affair with Netflix continues. Research firm Piper Sandler found the subscription streaming video pioneer resonates strongly with subscribers regardless of pandemic or other societal issues.
Citing an internal survey, Piper found respondents said they plan to keep their Netflix subscriptions whenever the coronavirus pandemic ends. Netflix has seen record subscriber growth throughout the COVID-19 crisis, adding as many subs in six months as it did all last year.
“Netflix has furthered its position as the go-to streaming option,” Piper wrote in a note, adding the aforementioned sub gains underscore Netflix’s long-held belief that consumers are migrating from linear TV to over-the-top video.
A key finding includes the fact most survey respondents indicated they would not be opposed to a price hike going forward — a reversal from a previous survey. Piper expects Netflix to raise its subscription prices in the next 12 to 24 months.
Wall Street, which loves any attempt at increasing company revenue and operating margins, upped Netflix shares 0.7% in midday trading.
Noted one market observer, “Netflix is a strong brand like Tesla for young people — and they have the best original content [in] both quality and quantity.”