A recent survey shows 27-percent of US Netflix subscribers indicated they might cancel their Netflix subscription due to the new price increases.
Earlier in the week Netflix announced it was increasing the price of all of its plans resulting in a increase for all customers in the US.
In spite of the increase only recently being announced, 61-percent of respondents were already aware of the price change, while 7-percent were unaware of how much their Netflix subscription cost prior, let alone afterwards.
The survey was undertaken by StreamingObserver in partnership with Mindnet Analytics, and consisted of responses provided by 607 participants (51-percent female and 49-percent male) in the US. All of the respondents were said to be current Netflix subscribers.
Based on the results, 27-percent of respondents said they were considering cancelling their Netflix subscription due to the price increase when they were specifically asked whether or not they plan to “continue with Netflix.” Technically, only 24-percent said they might cancel as the other 3-percent said they “will definitely cancel.”
A further 10-percent also stated they plan to stay with Netflix but plan to downgrade their subscription to offset against the higher cost.
More than 60-percent of responses indicated an intention to stay with Netflix and not adjust their plan irrespective of the price increase.
The results of the survey do seem to suggest that Netflix is starting to face an issue when it comes to how much is too much. Of course, this survey has come around very quickly after the announcement and therefore is subject to highlighting the immediate reaction of Netflix users. As in spite of similar sentiments made when the last price increase was announced, Netflix has only grown stronger with more users joining the service each quarter. So it remains to be seen how many will follow through and cancel their subscription.
On a separate, but related note, the survey also looked at how keen Netflix users are on the introduction of ad-supported version of the service.
Netflix does not currently use ads but could in theory subsidize the cost to consumers by including ads in a similar way to how Hulu currently operates. In Hulu's case the addition of ads reduces the cost to the consumer by $4, down from $11.99 per month to $7.99 per month.
The overall response to the survey revealed mixed feelings on this and in particular on how much of a discount would be needed to justify the inclusion of ads. For example, the highest response overall came from the ‘never’ camp with 35-percent of respondents stating no discount was enough to justify ads. Adding to that, a further 15-percent said Netflix would have to be completely free before they would use an ad-supported version, while 8-percent would want a discount of 75-percent.
29-percent of respondents would be willing to view ads if the service fee was cut in half, while 13-percent would accept ads in return for a 25-percent discount.
Netflix had already confirmed that following the increase, subscribers to the “Basic” plan will be paying $8.99 per month, those subscribed to the “Standard” plan will pay $12.99 per month, and those on the “Premium” plan will see their cost rise to $15.99 per month. This compares to $7.99 $10.99, and $13.99, respectively.
The new price increases have already taken effect for consumers who subscriber to the service now, while existing subscribers can expect to see the monthly increase reflected on their bill in the coming weeks and months.
Those who have access to the streaming service through T-Mobile's 'Netflix On Us' promotion won't have to worry about the price increase for now, although that could change later in 2019.