Consumers Willing to Pay More for Netflix, But Not Much Just how much more can Netflix charge for streaming video before consumers (w)balk? This hasn't been an easy question to answer, with many assuming Netflix would simply implode when it announced its first suite of rate hikes back in 2011 alongside its doomed and premature "Qwikster" DVD spin off. But consumers didn't care, nor did most care when Netflix bumped prices again last year. By and large, most users still seem to see Netflix as a value, especially when contrasted to soaring traditional cable TV prices.

But how much more will customers be willing to pay? A new survey by Digitalsmiths suggests that Netflix still has a lot of leg room when it comes to price hike. The survey of 3,114 adults found that 21% of Netflix customers said they would pay $16 or more per month for the streaming service, whose packages currently start at $10 per month and up, depending on how many simultaneous streams you want and whether you want 4K quality. That said, the same survey also found that 29.3% would prefer to pay any more than they do now, while 39.1% of those surveyed said they would pay $12-$15 per month, at most. Again though, Netflix's leg room is in large part thanks to users tired of paying too much for bloated, traditional cable TV bundles. The same survey found that roughly 35% of consumers pay $100 or more on cable or satellite TV per month; 49% pay $51-$100 per month; 16% said they spend less than $50 on pay TV. And as most readers are well aware, those price hikes show no sign of slowing despite the growing pressure from cord cutters fleeing to alternative services. For what it's worth, Netflix denies that its recent rate hike caused much of a problem. The company did recently see lower subscriber totals than most expected, but the company amusingly blamed the downturn on For what it's worth, Netflix denies that its recent rate hike caused much of a problem. The company did recently see lower subscriber totals than most expected, but the company amusingly blamed the downturn on media coverage of the hikes , not the price hikes themselves. It seems unlikely Netflix would be willing to push its luck much further at the moment, especially with people noticing the company's overall catalog of content has shrunk by as much as 40% . Still, if Netflix wants to push its luck, there's clearly a few customers that would be happy to oblige.







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Most recommended from 39 comments

dave

Premium Member

join:2000-05-04

not in ohio 21 recommendations dave Premium Member Why say that? quote: The survey of 3,114 adults found that 21% of Netflix customers said they would pay $16 or more per month for the streaming service If someone asked you "how much more are you prepared to pay?", why on earth would you tell them?



What possible good will it do you? If someone asked you "how much more are you prepared to pay?", why on earth would you tell them?What possible good will it do you?

battleop

join:2005-09-28

00000 4 recommendations battleop Member I simply voted with my wallet. I didn't write some long drama filled post in one of the forums here. I didn't spend time bitching about how I would love to but I just don't have any other options. Their CEO made comments I didn't agree with and they went up on my price. I responded by canceling my account.