월스트리트저널 읽기 - Netflix, Rate, China's Economy etc.

<FRIDAY, OCTOBER 20, 2023>

 

◈ Netflix Plans to Raise Prices, Password Curbs Lift Growth (넷플릭스, 가격 인상 계획, 비밀번호로 성장 억제)

 

 

Netflix said its effort to limit password sharing led to a 10.8% rise in subscriptions in the third quarter, a better-than expected result that comes as the company plans to increase some prices in the U.S. and other markets.

 

Shares rose more than 12% in after-hours trading. The streaming giant added 8.8 million subscribers in the third quarter with customer growth in every region, its largest quarterly customer gain since the second quarter of 2020.

 

The company plans to immediately raise prices for its basic plan in the U.S., which is no longer available to new customers, to $11.99 from $9.99 a month and up the cost of its premium plan to $22.99 from $19.99. It is also increasing some prices in the U.K. and France, though the cost of its ad-supported and standard ad-free plans are unchanged.

 

The price increases are a sign of streamers’ efforts to improve profitability and wean consumers off the low monthly subscription fees that drew users away from pricey cable bundles in the early days of streaming.

 

Netflix said in its third-quarter earnings report that its average revenue per member decreased 1% year-over-year as a result of limited price increases over the past 18 months, a higher percentage of its growth coming from countries where it charges less for plans, and changes to its mix of its subscriptions. It expects average revenue per member to improve in 2024 given the price increases and the expected growth in ad revenue.

 

◈ Top Fed Official Backs Pause in Rate HIkes (연준, 금리 인상 일시정지 지지)

 

 

The Federal Reserve should extend its pause on interest-rate increases because of growing evidence that higher borrowing costs will slow the economy despite recent signs of hiring and spending strength, a top central bank official said.

 

Philadelphia Fed President Patrick Harker in a Tuesday interview said he thinks the central bank can likely wait until early next year to decide whether rapid rate increases over the past 20 months have done enough to keep inflation heading lower.

 

“This is a time where we just sit for a little bit. It may be for an extended period; it may not. But let’s see how things evolve over the next few months,” said Harker, who has a vote on interest-rate policy this year.

 

◈ China's Economy Faces Long-Term Woes (중국 경제는 장기적인 어려움에 직면해 있다)

 

 

HONG KONG—China’s economy is shifting into a lower gear, with the property market that long fueled China’s growth mired in a prolonged downturn.

 

The struggling economy showed some signs of life on Wednesday, with strengthening retail sales helping to drive growth to a faster-than-expected 4.9% in the third quarter.

 

The data suggest that recent stimulus measures, including interest-rate cuts and steps to encourage home sales, have helped stabilize the economy, putting it on track to hit Beijing’s official growth target of around 5% this year. The report allayed, at least temporarily, fears of a worsening economic crisis.

 

Still, economists warn China’s economy remains fragile and its long-term prospects are darkening. In recent weeks, a bevy of economists have lowered their forecasts for China’s longer-term growth trajectories, even as they raised their shorter-term predictions.

 

◈ Bond Yield Tops 4.9%, Pressing Stock Indexes (채권수익률 4.9% 상회, 주가지수 압박)

 

 

Long-term bond yields hit a 16-year high, weighing on stocks already pressured by the conflict in Gaza and corporate earnings results.

 

The 10-year U.S. Treasury yield rose to 4.902%, the highest closing level since July 2007. The S& P 500 fell 1.3%. The Dow Jones Industrial Average shed 1%. The Nasdaq Composite lost 1.6%.

 

A swift climb in bond yields has dented enthusiasm for stocks in recent weeks. Investors are also monitoring the Israel-Hamas war that threatens to disrupt the global energy market. A mixed bag of corporate earnings results further complicates the outlook.

 

오늘도 경제신문으로 세상을 봅니다.

 

2023.10.19 - [경제신문 읽기] - 월스트리트저널 읽기 - U.S. Consumers, China Property Bonds, Rolls-Royc etc.

월스트리트저널 읽기 - U.S. Consumers, China Property Bonds, Rolls-Royc etc.