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Netflix recently announced an increase in its prices. In detail, the “Essential” subscription increases from €8.99 to €10.99, which is equivalent to an increase of 22%. Same, for the “Premium” formula recorded an increase of 11% and went from €17.99 to €19.99. Confronted with this announcement, subscribers are stunned.
The Civic Science platform, which analyzes consumer behavior, published a survey in October to survey American customers of the streaming platform regarding increases in price.
A very delicate choice
This reveals a real dilemma among the latter who seem to be prey to difficult reflection. Thus, 39% of subscribers plan to leave the streaming service if the price increases. But 31% are ready to opt for the cheapest option which includes advertising. This offer is encouraged by Netflix, which hopes to recover substantial revenues with this new market. Finally, 29% of respondents would agree to subscribe to an offer without advertising, and too bad if it is more expensive.
This study shows to what extent customers are full of doubt. The idea of going with the competition can be tempting, but you should also know that rivals such as Disney+ and Amazon Prime Video have also increased prices and are also offering ad-supported packages.
As a reminder, Netflix played it sober when it came to justifying its price increases. The streaming platform declared: “As we bring more value to our subscribers, we occasionally ask them to pay a little more.”.
It will be interesting to see over time whether the people who threaten to unsubscribe really take action. Recently, Netflix decided to put an end to account sharing between people who do not live under the same roof. This choice was criticized, and many Internet users threatened to unsubscribe. It is unknown whether they carried out their threat, but for now, this strategy is working for the entertainment giant.
Antenna analysts provided statistics for the United States last August. Experts noted a drop in its subscriber volume in April. Then, following the change, this level increased by 27.8% in May, 128.9% in June, and 25.7% in July. In fact, this is equivalent to an addition of 3.5 million additional customers in June, then 2.6 million in July. This total stands at 7.5 million since May.
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