Netflix Inc. NFLX announced a 16% price increase for its standard streaming plan on Tuesday, prompting economist Peter Schiff to warn of persistent inflation risks ahead of potential policy shifts under President Donald Trump‘s administration.
What Happened: The streaming giant raised its ad-free standard plan from $15.49 to $17.99 monthly while increasing its premium tier to $24.99 and the ad-supported option to $7.99.
The price hikes coincided with Netflix’s robust fourth-quarter earnings report, which showed revenue climbing 16% year-over-year to $10.25 billion and subscriber growth of 18.91 million, bringing total paid memberships to 301.63 million.
Schiff, a vocal critic of current monetary policy, cautioned on X that the Netflix price increase signals broader inflationary pressures. “The lull in the inflation storm is over. The consequences of inflationary monetary policy that finally showed up under Biden will kick into a higher gear under Trump,” he wrote.
Why It Matters: The economist’s warning comes amid broader market discussions about potential economic policies under a Trump presidency. A survey in October found 68% of economists expecting higher inflation under Trump compared to alternative policies, with particular attention to proposed tax cuts without corresponding spending reductions.
Netflix’s strong performance, including record operating income exceeding $10 billion for fiscal 2024, suggests continued growth potential. The company projects 2025 revenue between $43.5 billion and $44.5 billion, representing 12-14% growth while emphasizing its small current share of the estimated $650 billion market opportunity across its key regions.
Price Action: NFLX shares surged 14.39% to $994.89 in after-hours trading, setting new 52-week highs following the earnings announcement, according to data from Benzinga Pro.
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