Netflix raises prices in Germany and Austria, Citi comments

Netflix has announced price hikes across its subscription tiers in Germany and Austria, impacting an estimated 18% of its Europe, Middle East, and Africa (EMEA) subscriber base and 6% of its global subscriber pool. In Germany, the ad-supported tier will rise from €4.99 to €6.99, standard plans will increase from €13.99 to €15.99, and premium tiers will jump from €19.99 to €21.99. In Austria, basic plans will climb from €8.99 to €10.99, with standard and premium tiers matching the German price adjustments. Following the announcement, Citi analysts reiterated a Buy rating on Netflix with a $100 price target. The bank projects the adjustments will boost German average revenue per user (ARPU) by 24% and Austrian ARPU by 15%, translating into a 4% rise in EMEA ARPU and a 1.5% uplift to company-wide ARPU. However, local consumer protection regulations in both countries require prior notice and affirmative consent from existing subscribers. This legal requirement may prolong rollout times and push some financial benefits into fiscal year 2027.