Survey: Majority of Netflix Subs Share Passwords, Don’t Mind Price Hike

As the SVOD pioneer and a market behemoth (195 million subscribers), Netflix’s interaction with consumers in the over-the-top video ecosystem is always noteworthy to market researchers.

New data from KillTheCableBill.com finds that a majority (54%) of Netflix subscribers share passwords with friends outside the home, and a majority are not opposed to the service’s latest price hike. But another 25.7% said they would consider canceling service due to the price increase, with 6% saying they would definitely stop service.

The findings are the result of an online survey of 1,003 respondents, between Oct. 30 and Nov. 2, who claimed to be Netflix subscribers.

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“People obviously aren’t happy with their price going up, but this isn’t the first time,” William Parker, founder of the KTCB website, wrote in the report.” Perhaps it’s do to this conditioning, or maybe the still relatively low price point in comparison to cable, but the majority of subscribers plan on sticking with Netflix post-price raise.”

The survey also found that 18% of Netflix subs share passwords with friends, and 26% share with relatives who are not immediate family. About 32% of subs said they may consider canceling Netflix due to the price increase; 14% may downgrade to a lower subscription tier. About 37% of respondents said price hikes are their biggest complaint with Netflix; while 28% are most annoyed with losing popular shows like “The Office.” Only 17% of respondents said Netflix canceling its original programming was their main complaint.

“It’s interesting to note that subscribers are still worked up over the impending loss of ‘The Office,’ and similarly popular shows,” Parker wrote. “Interestingly enough, the least common chosen answer to the question was Netflix’s original programming being canceled.”

Report: Netflix Has 33 of IMDb’s Top 250 Movies, Beating Disney+, Amazon Prime Video, Hulu and HBO

Netflix’s foray into original feature-length movies has often been overshadowed by the company’s disdain for the traditional theatrical window — a stance that has left hundreds of millions of dollars in box office revenue on the table and generated resentment from exhibitors and industry traditionalists.

While Netflix’s original TV series dominant industry awards, the quality of its movies remains subjective, according to observers such as KilltheCableBill.com, which set out to determine how the SVOD behemoth’s movies compare in quality to its streaming and premium pay-TV competition.

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Netflix and Prime Video won their first Oscars in 2017 with Iran’s The Sales man and Manchester by the Sea, respectively. Netflix’s Roma won Best Director and Best Foreign-Language Film at the most-recent Oscars. The streamer again has high awards hopes for Martin Scorsese’s mobster flick, The Irishman.

Citing co-authored research from Mindnet Analytics, the website found that Netflix had 33 of the Top 250 movies ranked on Amazon’s IMDb.com site. While that translates to just 13% of IMDb’s tally, the percentage tops Prime Video (9%), Disney+ (5%), Hulu (4%) and HBO (1%).

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The data is interesting considering Disney’s current stranglehold on the box office and aggressive move to reclaim its theatrical content from Netflix for Disney+. The 22 movies on Prime Video don’t include feature-films available for rent on Amazon Instant Video.

The report determined that the HBO movie portfolio rated lowest in quality, according to IMDb.

Reports: Netflix Subs Don’t Want More Price Hikes, Open to Ad-Supported Streaming

With Netflix set to release financial results on July 17, two new research reports suggest the SVOD behemoth’s subscribers would consider ad-supported content instead of paying higher monthly fees.

While Netflix doesn’t stream advertising and has made no suggestion it plans to, industry scuttlebutt contends the No. 1 SVOD service might have to consider the option to offset burgeoning content costs and debt.

Recent comments from NBC Universal and Hulu executives have rekindled speculation as to whether Netflix will introduce an ad-based tier. Hulu has always offered a less-expensive ad-supported option, while NBC Universal’s pending streaming service will be both ad-supported and subscription based.

According to new TDG Research, a third of Netflix users would consider changing tiers, more than half of which are moderately likely to or definitely would switch.

While Netflix has consistently spurned ads, the decision is not entirely within its control, according to Michael Greeson, president of TDG and SVP of Screen Engine/ASI.

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Indeed, with two of Netflix’s most-streamed programs — “Friends” and “The Office” — set to leave the platform after 2020, the SVOD service in under increasing pressure to spend on original content to fill the void.

“Netflix’s response to its thinning third-party library is to spend more on originals, which it’s gambling will keep subscribers from jumping ship,” Greeson said in a statement. “But with half or more of its most-viewed shows being owned by three studios, each of which is launching their own DTC services, how long can you convince 55+ million U.S. consumers that your service is worth paying a premium price, especially compared with Hulu (offers an ad-based option), Amazon Prime Video (free with Prime), and Disney+ (coming in a $6.99/month)?”

TDG contends Netflix will need to increase the subscription fees (which it recently did), or create a new revenue stream, such as advertising.

“This should not be an either/or decision, but that’s what it is,” Greeson said.
A separate survey of 1,000 Netflix subs by KilltheCableBill.com found more than 24% of respondents thought their plan was too expensive.

TDG’s research from late 2018 found that Netflix’s most recent price increase strained the limit of the service’s value, even before popular third-party shows are pulled from the lineup.

The research firm contends Netflix could “bullet-proof” its future with the introduction of a less-expensive ad-supported pricing plan.

“The stage is shifting,” Greeson said, “and if, like Blockbuster [Video], Netflix fails to evolve in a timely fashion, the company may see its domestic fortunes reversed.”