![]() “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. ‘Wicked’ Teaser: Ariana Grande and Cynthia Erivo Defy Gravity in ‘Wizard of Oz’ Prequel
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