Netflix subscribers believed to be not so loyal after all, based on a survey conducted by YouGov and HuffPost last week, half of the paid users of the popular streaming video service are more likely to abandon their subscriptions once a $2 price hike is implimented by the company. Although if the price of Netflix subscription will only go up to $1, users will more likely stay with the service.
A news report published online at Huffingtonpost.com points out that the survey results can probably affect Netflix plans for a price increase in the U.S. after quite some time now. The famous video streaming service previously had a disreputable pricing collapse during 2011 causing hundreds of thousands of subscribers opting out of the service and company stocks to plummet. Netflix went to a crisis stage on their company after increasing their subscription prices as much as 60% without any warning or announcement to its users.
The price debacle from Netflix shocked most of its customers during that time which urged the founder and CEO of the company, Reed Hastings to issue a public apology to its subscribers.
Recently, Netflix has been more public on their plans to increase the price of their subscription fees, being more careful on their approach and learning from the 2011 notorious pricing debacle. The video streaming service has been announcing information about raising their prices for months, a move that will hopefully avert any issues that can pull them down again.
The most recent efforts from Netflix on their plans for price increase was announcing it to their investors that they will be charging new members between $1 to $2 more for their service that will be implemented next month. Current subscribers has also been guaranteed by the company that they will still be secured with their same subscription rates for up to two years.
The survey conducted by YouGov and HuffPost concludes that subscribers are still sensitive when it comes to Netflix raising its prices. The poll also shows that despite the efforts of the company to approach the announcement of their price increase earlier, customers are still aware that the added fee is a delicate matter for them. Subscribers who corresponded on the survey resulted that half of them will opt out of Netflix implemented a $2 increase on their fees.
