Happy with the price you’re paying for your Netflix subscription? Piper Jaffray analyst Mike Olson is willing to bet you’d pay even more without canceling your service.
Olson conducted a survey of 1,500 Netflix subscribers and found that more than half of respondents would maintain their subscription even if Netflix hiked prices by 50 percent to $15 per month. Olson thinks that even though Netflix’s next price increase is a year or two out, subscriber attrition would be in the low single-digits globally. Said Olson:
“Based on our survey, we believe un-grandfathering of subscribers on a lower priced subscription will have minimal impact on the overall sub base . . . Regarding future price increases … it appears Netflix has runway to push pricing higher.”
Netflix raised prices for new subscribers by $1 to $2 per month earlier this year and will soon do the same for existing customers.
Do you think Olson is right, Insiders? Can Netflix edge its pricing up even more and not risk alienating subscribers?
[via Home Media Magazine]
As long as I’m getting the service I’m getting now… Very fast mailing times. At this time I have three out at a time… And getting 20 DVD’s in the mail a month.. Less then a buck a DVD… And right to my door… And with the streaming deal… Works for me just fine..
Yes! I will pay a bit more………
What has been attractive about Netflix was their ability to manage their agreements and money to offer the best selection at the best price. There still is some lacking on that. If they just want to keep announcing prices are gonna go up every couple of years then at what point are people like me counting which shows and movies I watch verses cost. I would be done for sure at $15 because to me that prepresents basically a doubling of cost. With many free apps coming available on my Roku the need to pay has mostly gone away. Also Netflix is focused on global markets so shows aren’t pushing much boundaries. Chelsea for example had way more nudity and sexual content on her E! show. Hearing profanity isn’t a rush to me. Have more content for adults. I loved premium shows like Oz, Spartacus that pushed the limits of mainstream actors. So if they want to act more like a premium channel trying to be unique great, maybe then. If they act like the sad state of HBO Sho Starz now with their boring line up and weird shows, then now will cancel. Canceled cable 3 months ago and don’t miss it. Canceled HBO after True Blood ended, don’t miss it. Had both my whole life til then.
I pretty much agree with all that you said, I am not impressed with their boring new line up and weird shows either. And profanity is not impressive to me as well.
A piece of eriuitdon unlike any other!
If it raises much more, I will be forced to reconsider about subscribing, I only use the streaming service.
I don’t know, Netflix is filling too much with garbage stuff.
I’ve been a Netflix customer for over 5 years and they have jacked up my monthly fee twice, the last time just a month ago. I’m sick of it. And I agree that they’ve had a lot of crap on there lately.
I canceled my dvd subscribtion, not because of price, but because they closed the local distribution center. I was down to getting 1 dvd a week.
They would have to really step up there game as far as movie content and tv show content. I’m still waiting for season 2 of Gotham and the flash among other shows. If they could somehow be like Hulu, I can see paying $15.