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Netflix Just Raised Prices. Here's What It Means For Investors.
- What: Netflix raised prices for the fifth time in six years, with the new prices taking effect immediately.
- Why: The price hike is a signal that Netflix is prioritizing revenue growth over subscriber acquisition.
- Signal: The move could signal a shift in Netflix's business model, with a greater focus on premium subscribers.
- Target: The company is targeting an average revenue per user (ARPU) of **$25** per month.
- Risk: The price hike increases the risk of subscriber churn, particularly among budget-conscious consumers.