On the heels of Netflix raising the monthly price for its standard plan to $15.50, new data from researcher Morning Consult finds that the average U.S. streamer is comfortable paying only around $12 monthly for service. That’s about $3 less than the monthly fee for HBO Max, but above the fees charged by Disney+, among others.
Citing a Jan. 28-31 survey of 2,210 U.S. adults, the report found that respondents also considered the optimal price for ad-supported VOD services such as Hulu, Paramount+, Discovery+ and Peacock to be around $10.
Respondents’ acceptable price range for streaming services showed slight movement from a similar 2019 survey. The report found that the bottom of the price range for ad-free services increased by a dollar to $11-$16, while consumers’ preferred range for ad-supported services grew to $8-$14. Netflix’s new $15.50 standard plan is only 50 cents below what Americans said is the highest acceptable price for an ad-free streaming service.
“Netflix and HBO Max are quickly approaching the top of consumers’ preferred price range, while others such as Disney+ and Apple TV+ still have room to go higher,” report author Sarah Shevenock wrote in a note. “Given that consumers haven’t fundamentally changed their minds in the last three years about how much a service should cost, additional increases could spur consumers to reconsider the number of subscriptions they can afford. It is a delicate game of which companies such as Netflix are well aware, but for now, they think the added revenue is worth the risk of losing some subscribers.”