As far as video streaming options are concerned, you’d be hard-pressed to find a service that offers consumers more bang for the buck than Netflix. Even with a series of incremental price increases over the past few years, the value proposition afforded by Netflix is arguably unrivaled, especially given the avalanche of new content the streaming giant continues to roll out with each passing month.
Nonetheless, some subscribers take an opposing view and believe that Netflix has gotten a tad too pricey. According to a recent survey involving approximately 1,000 Netflix subscribers, 24.3% of respondents believe that Netflix has gotten to expensive.
Of course, statistics can be spun in either direction, which is why it’s worth noting that 61.4% of respondents indicated that Netflix is reasonably priced. Meanwhile, the other 14.3% of respondents said that Netflix represents a great value.
As to how Netflix’s pricing has increased relative to inflation over the years, Kill The Cable Bill writes:
In 2014, Netflix began offering different tiers of streaming-only service, with its Basic plan remaining at $8, its Standard plan going up to $9, and its Premium plan reaching $12.
In 2015, Standard would go up another dollar to $10.
By 2017, Standard plans had reached $11 and Premium had hit $14.
Finally, earlier this year, Premium shot up to $16, Standard reached $13, and Basic finally increased for the first time up to $9.
If Netflix’s price points had stayed consistent with inflation since 2014, Basic service would be $8.65, Standard would be $9.74, and Premium would cost just under $13. Of course, Netflix has had to drastically shift its strategy in recent years, dumping billions upon billions of dollars into developing its original TV series and movies, and those costs have to get passed on, in part, to consumers.
There’s no question that consumers are subsidizing Netflix’s wild spending habits, but again, the value proposition is really remarkable. Further, even a Netflix premium plan of $16/month seems like a steal relative to what one would ordinarily pay for a traditional cable package.
Interestingly enough, and on a somewhat related note, a recent study found that 60% of Netflix customers would be okay with ads on the site if it resulted in a cheaper subscription package to the tune of $3 off per month.
As a final point, there has been talk over the years of Netflix subscribers fleeing the service in the face of price increases. The reality, though, is that Netflix has continued to impressively bolster its subscription base year over year. Sure, some subscribers might drop off, but the company rolls out enough compelling content to attract enough subscribers to more than make up the difference.