New Survey: Consumers Are Feeling the Netflix Pinch
wASHINGTON, D.C. — The Bull Moose Project today released a new survey on attitudes of Netflix subscribers.
Earlier this year, Netflix—the world’s largest subscription video platform—raised prices on consumers, again. It was the second time in just thirteen months that the company hiked its rates and the sixth time in since 2017.
The Bull Moose Project has been cautioning about the insidious effect of these subtle price increases for months. To better understand how the burgeoning monopoly’s actions affect ordinary families, we commissioned a survey of 1,500 Americans by the market research firm Cygnal.
The findings underscore the pinch Netflix’s market amalgamation puts subscribers in, at a time when many already feel stretched thin financially:
About two-thirds of respondents subscribe to Netflix, which aligns with independent data. Netflix enjoys over 87.7 million subscribers in the U.S. alone, nearly 40 percent higher than the next closest “pure streamer.”
44 percent of respondents considered cancelling their Netflix subscription within the past three months because of rising costs, and 12 percent already have. That means almost 39 million Americans have thought about cutting ties with Netflix and more than 10 million have.
One-third of respondents were not aware of Netflix’s most recent price increase, and fewer than one in six people learned about it directly from the company. The data suggests Netflix has been quietly jacking up prices with the assumption that it has users cornered.
About a quarter of the people surveyed cited inflation and the economy as their top concern, the highest of any issue. As another recent study put it, families are feeling gloomier about their household finances than they have in years.
Netflix may fly its rate hikes under the radar, but the regular upward march is hurting hard-working individuals and families.
Other subscription video services could make the case that price increases are necessary to stay solvent. Netflix seems to do it because it can.
The streaming giant’s latest price jump is a bridge too far for many. Whether the company feels the impact of customers cutting the cord is hard to say, since it stopped reporting subscription numbers last year. What’s certain is, competition is needed to keep prices low and ensure users have alternative options if, or when, Netflix’s price gouging becomes unbearable.
See the relevant slides here.
