Netflix (NASDAQ:NFLX) Announces the New Head of Its Film Unit
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Netflix (NASDAQ:NFLX) Announces the New Head of Its Film Unit

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Netflix installs a new head of its film division, who will have to do more with less as price hikes are also in store.

Video streamer Netflix (NASDAQ:NFLX) is coming under a lot of fire like the rest of the industry. While its sheer size and massive user base have allowed it to duck some of the worst issues, there are still problems afoot for Netflix. Nevertheless, it just named a new head of its film unit, but investor reaction wasn’t that enthusiastic as shares declined modestly in Thursday afternoon’s session.

Netflix turned to Dan Lin, known for his work in the various Lego movies, the recent two-part revival of Stephen King’s “IT”, and the latest live-action remake of “Avatar: The Last Airbender.” Interestingly, Warner Bros Discovery (NASDAQ:WBD) tried to get Lin to run its DC Films division, but Lin passed them over to work with Netflix.

Lin will be taking over for Scott Stuber when he leaves Netflix this March. He will also have a bit of an uphill battle to take on. Indeed, Lin will have to do his job with less as Netflix is pulling back on original films.

Cut Costs, Hike Prices

Worse for Lin is the notion that Netflix will also likely bring in a whole new price hike at some point in 2024, reports note. Variety revealed that Netflix’s share of TV viewing is on the rise, and that’s likely to make a price hike a tough move to pass up. Under pressure to show profitability after a massive spending spree, it’s easy to see why Netflix would want to rebuild its cash pile by hiking prices when it’s at its peak of popularity. Even assuming it loses some subscribers as a result, it will still have more than it did just a year or two ago when prices were lower.

What Is Netflix’s Target Price?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 26 Buys, 13 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 90.17% rally in its share price over the past year, the average NFLX price target of $573.12 per share implies 3.7% downside risk.



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