3/19/2024 0 Comments Netflix subscription priceMore than a third of the respondents who said they would cancel Netflix due to a price hike said they are running out of content. Recent CivicScience data finds that 29 percent of streaming users say they are having trouble finding content to watch, up from 24 percent in pre-strike April. The Hollywood strikes are also having an impact. Thirty-seven percent of Netflix ad-free subscribers, and 24 percent of ad-supported subscribers, expressed “increased price sensitivity over the last year.” (Drilling down further, it is the 35-54 crowd that is the most price-sensitive and the most likely to ditch Netflix.) “The Fall of the House of Usher” EIKE SCHROTER/NETFLIX The monthly percentage of those with four or more streaming subscriptions has steadily declined all year. adults “have reduced or plan to reduce spending on streaming subscriptions” - up from 28 percent in January. The group’s monthly tracking finds that 33 percent of U.S. While “weekly” users of Netflix would “drop significantly” from ad-free, it is the “monthly” users who are most likely to switch plans and/or drop out of the ecosystem completely.Ī CivicScience study in August found that inflation is taking a significant toll on streaming subscriber numbers. We’ll get an update on Netflix subscribers - and maybe a bit more about the reported price hike - when the company reports third-quarter results October 18.ĬivicScience found that the more one watches Netflix, the more likely they are to subscribe to an ad-free plan: These are the consumers who feel they are getting their money’s worth. Of Netflix’s more than 238 million global paid subscribers as of the end of June, 73 million came from the U.S. Netflix declined comment to IndieWire on both the reported price increase and the CivicScience findings. The breakdown in the SAG-AFTRA and AMPTP talks buys Netflix time to reconsider - and gives Netflix users time to consider their options. The purported Netflix plan was to wait out the actors strike - but in early October, there was more optimism surrounding those negotiations. Incredibly, Sarandos added: “We really don’t spend that much time on trying to figure out how much we’ll get you to pay.” The results of a CivicScience study on the reported Netflix price hike. “And then we come back and ask them to pay a little bit more for it if they if they agree.” “Our pricing philosophy has not changed, which is we have to add more value to the consumer,” he said. “They are now pushing the upper boundary of what they can charge before they see a substantial decrease in subscribers,” Dixon emailed us.Īt the October 12 Bloomberg Screentime event, Netflix co-CEO Ted Sarandos said he had “nothing new to announce” in terms of price increases. “I haven’t seen a strong correlation between the number of people who say they are going to quit and those who actually do.”īut still, Netflix ought to tread lightly here. Survey respondents can be all talk, he said. “If Netflix’s research shows that they will lose one-third of their premium subscribers on a $1 monthly price increase, they would be unlikely to implement the price increase.”Ĭolin Dixon of nScreenMedia also doesn’t see a third (or more) of Netflix users bailing after the next price increase. “Similar to prior years in which they instituted a price increase, (Netflix) would not do so without careful analysis in order to limit churn,” Reese told IndieWire. So that’s not going to happen it’s just what could happen with the wrong execution. If an instant 35-39 percent chunk of churn sounds astronomical, it would be devastating to Netflix. (No offense to CivicScience this is just how it works.) The streamer is regularly doing more market research on its own users than a one-off CivicScience survey. Netflix, a data-driven company itself, knows this. And what the CivicScience survey “doesn’t adequately address,” per Wedbush Securities analyst Alicia Reese, “is the precise price elasticity of its users.” A lump sum of users may indeed scrap Netflix at a $5 monthly increase, but probably not for a dollar or two. Not all price hikes are equal, of course. Netflix is “discussing raising prices in several markets globally,” WSJ wrote, “but will likely begin with the U.S. Measuring Applause at the Oscar Nominations Luncheon
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