Netflix Announces Game-Changing New Pricing Plan—Everything Subscribers Need to Know Now

Investors woke up to big news from Los Gatos: Netflix has approved a ten-for-one forward stock split, its first split in more than two decades. The move, announced late Thursday, will increase the number of outstanding shares and reduce the per-share price, making the streaming giant’s stock more affordable for retail buyers while preserving total market value. Key details • Record date & distribution: Shareholders of record at the close of business on November 14 will receive nine additional shares for every one they own. Trading on a split-adjusted basis is expected to begin November 17. • Rationale: Netflix says the split is designed to “increase liquidity and broaden ownership,” a typical motive for mega-cap tech companies that have seen their stock prices soar. • Historical context: Netflix last split its stock 7-for-1 in July 2015. Since then the company has more than tripled its subscriber base and expanded into 190+ countries. Why it matters for investors 1. Lower entry price: At Thursday’s close around $510, post-split shares would trade near $51, a psychologically friendlier level for small investors. 2. Potential index inclusion: A split can pave the way for Dow Jones Industrial Average consideration, which favors lower-priced constituents. 3. Options volume: Lower strike prices typically boost options activity, adding another layer of liquidity. Streaming fundamentals remain strong The financial maneuver comes as Netflix caps a robust quarter: • Paid memberships reached 286 million, driven by ad-supported tiers and the crackdown on password sharing. • Free cash flow topped $2 billion, driven by disciplined content spending and a lighter release slate during the Hollywood strikes. • Operating margin hit a record 24 %, reflecting management’s shift toward high-ROI content and licensing. Content pipeline could supercharge Q4 November brings the big-budget action comedy “A House of Dynamite,” season 3 of “The Diplomat,” and holiday rom-com “Love, Actually Maybe,” positioning Netflix to dominate year-end viewership charts. Early engagement data from the streamer’s weekly Top 10 already shows “A House of Dynamite” premiering at No. 1 globally. Analyst outlook • Goldman Sachs maintained a Buy rating and raised its 12-month price target to $610 (split-adjusted $61) on accelerating ad revenue. • BofA flagged rising competition from Disney+ and Prime Video but conceded that Netflix remains “the platform to beat” thanks to its global scale and data-driven programming. Bottom line Netflix’s ten-for-one stock split is more than a cosmetic change; it signals confidence in sustained growth while inviting a broader investor base to ride the streaming leader’s next chapter. Between surging subscriber numbers, a packed content slate, and fresh buzz around an affordable share price, Netflix is positioning itself for a strong holiday quarter—and perhaps for inclusion in the blue-chip Dow sooner rather than later.