It would be the understatement of the century to say Netflix has been our savior over the past few months. At this point, the streaming service is a key worker. Netflix has provided us with a plethora of entertainment. And 2020 has been the year they have seriously ramped up their content. Lockdown has seen not only engagement massively increase, but Netflix’s subscriber count has skyrocketed. While this isn’t bad news for the company or the subscriber as this could mean more amazing series and movies, could this mean there’s an increase in price?
A recent survey highlighted how user’s love for the service could be the reason prices increase. Participants were asked if they would pay extra, and customers suggested that they are 5 times more likely to tolerate a 10% increase in fee because content has improved over the past number of months. With this information, we could be seeing membership fees increase, as it provides the company a ‘golden opportunity’ to up their prices.
Does more subscribers = more money?
Reliable technology is a factor that has kept us going through the pandemic. Video calling friends, live-streaming their workouts, or binging on the latest series, broadband has improved. This consumption addiction under these strains could mean Netflix, along with other streaming services, could hike their prices to ensure every customer receives the content they want. Experts predict that streaming services are about to dip their toe into video-game streaming. So is it more than likely that a price increase is imminent?
A recent study from Simon-Kucher Partners found that Netflix is about to cash into their growing success, as their growing user base increase quicker than they could have ever imagined. Behavior is set to change for good, as it looks like millions of people are remaining indoors for quite some time. This allows Netflix to increase prices further, especially as the hours of content viewed is only going up. The study highlights how a price increase would not drive customers away. Just 1.3% saying they feel like would cancel their subscription if Netflix decided to increase their prices.
We wonder if Netflix will decide to increase fees?
The results are showing that in the next coming months we could see ourselves paying more for the service. When asked what’s the most important, participants felt the amount of available content and the latest releases were number one. Price was fourth, which means Netflix could be raising prices in the near future. The CEO of Simon-Kucher & Partners announced that recommendations on optimal prices ‘send a very positive message to streaming providers. Consumers are currently having a crash course in what they can (or can’t) live without. And streaming services are definitely in the ‘can’t live without’ bucket’. Very interesting.
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