Netflix just announced a rise in the price of its most popular offering to $11 a month – a potential inflection point in pricing. In my final blog for GfK, I discussed insights resulting from a 3-year trend in the perceived value of Netflix, which suggested that $11 a month might be the maximum consumers are willing to pay.
As discussed in the post, the perceived maximum value of Netflix among its regular users showed very little change from 2014 to 2017 ($10.38 in April 2014, $10.82 in February 2016, and $10.81 in June 2017). The consistency of these results does seem to indicate that $11 a month is a line – perhaps only one drawn in sand – that even Netflix’ regular users may not be willing to cross, meaning future price bumps could meet increasing pushback.
While not a sophisticated pricing examination, it is certainly worth considering for those of us not in the room when Netflix makes its own analysis and decisions.
A broader discussion of OTT pricing can also be found in my recent discussion on the VideoNuze podcast, published September 29th.
More details on the GfK report – “Over-the-Top TV 2017” from The Home Technology Monitor – can be found here on the GfK website.
