Netflix Raises Prices in Germany and Austria to Boost Sales

Key Moments

Price Changes Across German and Austrian Plans

Netflix has raised subscription prices in Germany and Austria, a move that Citi analysts estimate will affect roughly 18% of the company’s subscribers in Europe, the Middle East and Africa and around 6% of its global customer base.

In Germany, the increases span the ad-supported and higher-tier plans. In Austria, the hikes apply to the Basic, Standard, and Premium tiers.

Projected Impact on Revenue Metrics

Citi analysts expect the revised pricing structure to significantly lift Netflix’s average revenue per user (ARPU) in the affected markets. They forecast a 24% increase in German ARPU and a 15% increase in Austrian ARPU.

On a regional basis, Citi estimates the moves will translate into roughly a 4% increase in ARPU across the Europe, Middle East and Africa segment. At the company level, the changes are projected to add about 1.5% to overall ARPU.

Regulatory Constraints and Rollout Timing

Implementation of the new prices is subject to consumer protection rules in Germany and Austria. These rules require that existing customers receive advance notice and provide explicit consent before higher prices can be applied.

Citi highlighted that these legal requirements could lengthen the rollout timeline and push a portion of the anticipated financial benefit into fiscal year 2027. As a point of comparison, the note referenced that Spotify offered subscribers in Germany and Austria a 90-day period to agree to a price increase in August 2025.

Citi’s View on Netflix Stock

Citi reiterated its positive stance on Netflix (NASDAQ:NFLX), keeping a Buy rating and a price target of $100. The firm noted that Netflix shares closed at $82.67 on Wednesday.