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Investors Cheer Price Hike for Netflix, Inc. (NFLX)

By U.S. News & World Report

Netflix, Inc. (Nasdaq: NFLX) is once again raising the monthly price of its most popular streaming subscription packages. Netflix stock jumped more than 5 percent on Thursday on investor optimism that the price hike will help Netflix boost free cash flow as it continues to beef up its content library.

Netflix is raising the price of its most popular HD streaming plan roughly 10 percent from $9.99 to $10.99 per month. In addition, it is raising the price of its premium plan by 17 percent from $11.99 to $13.99 per month. The basic non-HD streaming plan will remain $7.99 per month.

The price increase will go into effect on current subscribers’ next billing cycles.

[See: 9 of the Market’s Best Growth Stocks.]

“From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster,” the company said in a statement.

While the price hike should boost Netflix’s revenue per user, it could also negatively impact subscriber growth. A similar $1-per-month price hike in 2015 resulted in Netflix subscriber growth dropping to a three-year low by mid-2016.

RBC Capital Markets analyst Mark Mahaney says investors shouldn’t be concerned about a similar slump in subscriber growth this time around.

“We believe that Netflix’s pricing power has increased materially over the past few years as their content slate and technology has improved,” Mahaney wrote on Thursday, according to Bloomberg.

[Read: Why Are We Attracted to Cult Stocks?]

Netflix has been spending so aggressively on growing its original content library and expanding its international presence that the company reported a net free cash flow deficit of $1.7 billion in 2016. Netflix is planning to spend $15.7 billion, or roughly 19 percent of its current market cap, on content in the next several years. The company is coughing up $6 billion on content in 2017 alone.

CFRA analyst Tuna Amobi says the positive market reaction is a sign investors expect customers to still value Netflix’s service, even at a slightly higher price.

“All in all the market is viewing this as a positive and something that will hopefully support more innovation on the platform,” Amobi said, according to USA Today.

Netflix has been one of the top-performing stocks in the entire market for long-term investors. The stock is up roughly 2,870 percent in the past eight years.

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Investors Cheer Price Hike for Netflix, Inc. (NFLX) originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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