Netflix Price Increase Could Result In 27% Of Subscribers Cancelling

Netflix recently unleashed their biggest price increase ever, and some subscribers aren't happy about it. A new survey reveals that Netflix might lose up to 27% of subscribers due to the price hike. Are you among them? Are you, too, ready to give Netflix the boot and head over to Hulu or Amazon Prime Video exclusively? If so, you're definitely not alone.Streaming Observer and Mindnet Analytics recently got together to find the answer to a simple question: do Netflix price hikes cause subscribers to pull the plug? The streaming giant recently unveiled its largest price increase so far: the basic plan is now $9, the most popular option, HD standard, has increased to $13 a month, and 4K Premium will run you $16.

Streaming Observer and Mindnet reached out to 607 random Netflix subscribers, and came back with a surprising number: 27%. That's how many of those surveyed said they might consider cancelling Netflix. Some even said they'd prefer something cheaper with commercials. Here are some more findings:

  • Around 1 in 4 subscribers claim they could cancel Netflix because of the price increase.
  • Most Netflix subscribers would be interested in a discounted, ad-supported version of the streaming service
  • 7% of subscribers don't know how much they're currently paying for Netflix
  • Obviously, this isn't the end of the world. These people surveyed say they might cancel – not that they're going to flat-out do it. Still, it's a sign that Netflix users aren't very happy with having to pay more money. As the survey states:

    Not surprisingly, Netflix's rate increase has some customers thinking twice about whether or not they want to keep paying for the service. Despite only being a $1-$2 increase, a total of 27% say they are either considering canceling or will definitely cancel their service. Another 10% said they planned on downgrading to one of Netflix's less expensive plans to offset the new rates.

    This might sound like bad news for Netflix, but we don't think the sky is falling. In the past when Netflix has raised prices and subscribers have threatened to cancel in large numbers, analysts predicted only a very small percentage, roughly 3%-4%, of subscribers would actually do so. In that case, the price increase would still prove to be quite profitable overall for Netflix.

    This info comes directly after news broke revealing Netflix competitor Hulu is planning to drop their prices from $7.99 per month to $5.99 per month starting at the end of February. If Netflix users really do want to call it quits, they might find the lower Hulu prices much more appealing.