One of the most attractive features about Netflix is its price. For a mere $10 a month, subscribers have instant access to thousands of hours of movies and TV shows. Not a bad deal.
But the recent “ungrandfathering” of accounts — i.e. after a grace period, the accounts that were paying $9 per month were now paying $10 — has raised a question in the minds of many: How much are you willing to pay for Netflix.
Subscribers’ limit appears to be $12-15 dollars, per the most recent consumer survey from research firm Digitalsmiths.
According to Digitalsmiths’ survey of 3,114 people in the U.S. and Canada, 39 percent would pay somewhere in that $12-15 range. The bad news is that 29 percent say they aren’t willing to endure any further increase at all.
After missing on subscriber growth expectations last quarter, that might be a bit of a worry for Netflix, as it mulls how to wring more money out of a possible saturated market like the U.S.
The streaming giant counts 36.05 million international subscribers and 47.1 million in the U.S. But growth in the U.S. is slowing, and the international segment is still hemorrhaging money ($173.4 million in the first six months of 2016). Netflix needs to be able to attract more subscribers who can pay premium prices.
Netflix currently owes studios an astonishing $13.2 billion in off-the-books commitments. Most of that is licensing deals for content that has already appeared elsewhere, but the streaming giant is also ramping up spending on Netflix exclusives like Baz Luhrmann‘s “The Get Down” ($120 million for six episodes) and the upcoming Queen Elizabeth drama “The Crown” (a reported £100 million, or around $131 million).
The Digitalsmiths report also revealed that 10.4 percent of respondents said they piggyback off acquaintances’ streaming accounts — sharing a password, rather than subscribing to these services themselves.
Netflix CEO Reed Hastings said at this year’s Consumer Electronics Show that many of Netflix’s password-moochers eventually get accounts of their own and that password sharing also aids in stopping subscribers from dropping the service. There’s a reason Netflix allows you to set up different viewer profiles, and, with the $10-a-month version, watch up to two HD streams at a time.
All the same, nothing gold can stay, and Netflix will eventually have to introduce another price increase.
The good news is these results don’t necessarily spell doom for Netflix: The trouble with survey-based research is that what people say doesn’t always jive with their behavior. It’s more useful as a guide to the customer’s mindset than a predictor of future actions.
What's New on Netflix in September: 'Zootopia' and 'Luke Cage' Coming, 'Fringe' Leaving (Photos)
From Disney's "Zootopia" to Netflix Originals "Narcos" and "Marvel's Luke Cage" to "Jaws," read on for the best of what Netflix is adding in September -- and what you need to watch before it leaves.
Available Sept. 1:
What better time to stream "Jaws" than at summer's end? You can even create a "Jaws" marathon, since "Jaws 2," "Jaws 3" and "Jaws: The Revenge" will also come to Netflix that day.
Available Sept. 1:
"Bill and Ted's Bogus Adventure" makes for very not-bogus viewing.
Available Sept. 1:
If you're in the U.S. and are a fan of "The IT Crowd," you've probably already pirated the fifth season, but now you can watch it legally. Just don't drop the internet.
Leaving Sept. 1:
"2 Fast 2 Furious," you are just 2 good 4 Netflix, apparently.
Available Sept. 1:
Tell your dad "Saving Private Ryan" will now be available to stream. It'll make his weekend.
Leaving Sept. 1:
Perfect your Blue Steel imitation before "Zoolander" gets disappeared by Mugatu.
Available Sept. 1:
Anyone who tells you "Practical Magic" is not a great movie is lying to you. Get back at them by watching it.
Available Sept. 1:
You'll be able to stream the Famous Original "Footloose," with Famous Original Kevin Bacon.
Available Sept. 1:
We're not including "Top Gun" in this list just to make a "Danger Zone" joke, we promise.
Available Sept. 2:
The second season of Netflix original Series "Narcos" drops, with Pablo Escobar (Wagner Moura) escaping prison and stacking up the body count.
Available Sept. 2:
If you're not hungry before starting "Chef's Table: France," the third installment of the "Chef's Table" series, you will be by the middle of the first episode.
Available Sept. 7:
"Galavant" was a fun musical comedy that was canceled by ABC in May, but Seasons 1 and 2 will have a forever-ish home for whenever you want to sing along to "My Dragon Pal and Me."
Leaving Sept. 9:
Underrated Disney animated movies "The Emperor's New Groove" and "Lilo & Stitch" are going back in the streaming vault for a bit.
Leaving Sept. 11:
The Observers have won. All five seasons of "Fringe" will be departing the service, leaving you with nothing but YouTube fan videos dedicated to Peter (Joshua Jackson) and Olivia (Anna Torv).
Available Sept. 13:
The first season of "Supergirl" hits Netflix in time for you to catch up before the second season -- which will also feature Tyler Hoechlin as the Man of Steel -- premieres on The CW on Oct. 10.
Available Sept. 16:
In case you're wondering, the "Ville" in "Cedric the Entertainer: Live from the Ville" is short for "Nashville," where this comedy special was shot.
Available Sept. 20:
Disney's smash animated hit "Zootopia" won't be on any other service or cable channel. Settle in with the kids (or by yourself) for this charmer.
Available Sept. 22:
The first season of Netflix original "Easy," Joe Swanberg's anthology series about the denizens of Chicago that includes Jake Johnson, Hannibal Burress, Gugu Mbatha-Raw and Aya Cash in its cast, premieres.
Available Sept. 23:
Documentary "Audrie & Daisy" chronicles the lives of two girls driven to suicide attempts after being sexually assaulted.
Low-key modern Western (and Netflix original Series) "Longmire" returns for its fifth season of crime fighting in Wyoming.
Leaving Sept. 25:
September is a bad month for J.J. Abrams-produced shows on Netflix, as "Alias" and its spy family join "Fringe" in abandoning viewers who want to re-watch the incomparable "Phase Two" episode whenever they want.
Leaving Sept. 25:
The Ashton Kutcher "Jobs" movie didn't get quite the same acclaim as the Michael Fassbender-starring "Steve Jobs," but you'll never know what you don't like if you don't try.
Available Sept. 30:
Just squeaking in under the wire is "Marvel's Luke Cage," the much-anticipated third entrant in Marvel's "Defenders" series, starring Mike Colter as the indestructible hero also known as Power Man in the funny books.
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”Zootopia,“ ”Supergirl“ and ”Zoolander“ round out the list of what’s coming and what’s going this month on the streaming service
From Disney's "Zootopia" to Netflix Originals "Narcos" and "Marvel's Luke Cage" to "Jaws," read on for the best of what Netflix is adding in September -- and what you need to watch before it leaves.
