One of the reasons Netflix (NFLX) cited for its slightly weaker-than-expected subscriber growth was its recent $1 increase in the monthly subscription cost for the service. Over at Bespoke Market Intelligence, we run a quarterly consumer survey on Netflix (NFLX) and other streaming media companies to track the sector, with extra attention paid to Netflix. We just ran our most recent survey earlier this month, which is available for purchase if you're interested. It's a must-read piece of research if you have a big position (either long or short) in Netflix. Visit our "custom studies" page to learn how to purchase.
One of the many questions we ask consumers in our Netflix/streaming media survey is whether they "believe Netflix streaming would be a great deal at $8.99 per month". Below are the results from both our June and October surveys. The $1 price increase from $7.99 to $8.99 took place back in May, so the June survey was the first that ran after the price increase.
As shown, there was no significant difference in opinion from June to October, and a large majority still either agree or strongly agree that $8.99 is a great deal. Less than 10% disagree or strongly disagree that $8.99 is a great deal.
When we asked current Netflix subscribers about the value they get for their money, a large majority are either satisfied or very satisfied, with 35.9% answering "very satisfied". Less than 5% of subscribers are either unsatisfied or very unsatisfied with Netflix's value.
Based on our survey analysis, we don't believe the $1 price increase has impacted subscriber growth to a significant degree. In general, $8.99 is viewed as a great price for the service.
Last week, we published a "Pulse Point" on Netflix for Bespoke Consumer Pulse subscribers. We are providing a free look at the report below as a way to show you the type of content that's included with a Pulse membership. These Pulse Points are released throughout the month, in between our monthly Consumer Pulse Report, which makes up the backbone of the Pulse service. To learn more about Pulse, please visit our website. You can sign up for the service now for 30% off the life of your membership! Simply enter "pulsecharter" in the coupon code section of the Pulse subscribe page to receive the discount. Our next Consumer Pulse Report is due out at the end of October, one week before the early-November nonfarm payrolls release.