Netflix has announced tentative plans to raise monthly subscription prices for new users by a couple of dollars. Existing customers will be able to keep the same rate for a longer time period, but not indefinitely. What do current users think about the price of Netflix? And is price an issue for potential new customers?
In Ask Your Target Market’s latest survey, 41% of respondents said they currently subscribe to Netflix. 19% subscribe to other video streaming services. And 51% said they don’t subscribe to any streaming services. There’s been a small increase in subscribers over the past few months. In a January 2014 survey, 40% subscribed to Netflix and 15% subscribed to other streaming services.
Overall, 46% of streaming customers said they are currently very satisfied with the price of their video streaming service. 46% said they are somewhat satisfied with the price. 6% said they are somewhat unsatisfied. And just 3% said they are very unsatisfied. Netflix subscribers were 2% more likely to be very satisfied with the price of their service. It makes sense that most current customers are at least somewhat satisfied with the price, since they would likely just unsubscribe if they weren’t. So what if the price goes up as Netflix is suggesting? Just 18% of current streaming customers said they would definitely continue subscribing if the price increased by one or two dollars per month. 51% said they would probably continue to subscribe even with a small price increase. 26% said they probably would not continue subscribing. And just 5% said they definitely wouldn’t. Netflix subscribers were just 2% more likely to say they would definitely continue subscribing even with a small price increase.
Of those who don’t currently subscribe to any streaming services, 34% said that the price is at least part of the reason they choose not to subscribe. However, even more respondents, 55%, said they don’t subscribe simply because they don’t think they would use it enough. 10% said they don’t think there are enough options available. And 12% cited other reasons for not subscribing, such as not having devices with streaming capabilities.