Netflix is planning to raise prices when the current actors strike ends. The Wall Street Journal reported on Tuesday that the company will raise the price of its ad-free streaming tier at the conclusion of the strike. The amount of the increase is as yet undecided but is likely to be similar to competitor pricing. This comes off the back of Netflix focusing on initiatives such as the ad free tier and cracking down on password sharing. However, the company share price has come under pressure of late, perhaps suggesting that the increase is a bad idea given the deceleration in the global economy.
Netflix last increased prices in early 2022 but also removed its basic plan in July to try and entice users to a cheaper ad-based offering.
Weekly Chart Analysis
1. Netflix (NFLX.us) has charted a lower peak followed by a lower trough.
2. This puts the weekly chart into downtrend.
3. This is emphasised by the candlesticks moving below the black 30-week EMA and the EMA turning down.
4. The weekly RSI has dipped below 50 (green rectangle).
5. This is the bearish side of the indicator and denotes an underlying bearish momentum.
6. The longer the RSI remains below 50, the more headwind Netflix faces regarding present downwards momentum.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.