Netflix Price Increase Could Result In 27% Of Subscribers Cancelling
By Chris Evangelista/Jan. 24, 2019 11:30 am EST
Streaming Observer and Mindnet reached out to 607 random Netflix subscribers, and came back with a surprising number: 27%. That’s how many of those surveyed said they might consider cancelling Netflix. Some even said they’d prefer something cheaper with commercials. Here are some more findings:
Obviously, this isn’t the end of the world. These people surveyed say they might cancel – not that they’re going to flat-out do it. Still, it’s a sign that Netflix users aren’t very happy with having to pay more money. As the survey states:
This might sound like bad news for Netflix, but we don’t think the sky is falling. In the past when Netflix has raised prices and subscribers have threatened to cancel in large numbers, analysts predicted only a very small percentage, roughly 3%-4%, of subscribers would actually do so. In that case, the price increase would still prove to be quite profitable overall for Netflix.
Not surprisingly, Netflix’s rate increase has some customers thinking twice about whether or not they want to keep paying for the service. Despite only being a $1-$2 increase, a total of 27% say they are either considering canceling or will definitely cancel their service. Another 10% said they planned on downgrading to one of Netflix’s less expensive plans to offset the new rates.
This info comes directly after news broke revealing Netflix competitor Hulu is planning to drop their prices from $7.99 per month to $5.99 per month starting at the end of February. If Netflix users really do want to call it quits, they might find the lower Hulu prices much more appealing.
