Netflix and its user base indeed share an ‘it’s complicated’ type of relationship. The latter party often expresses frustration with the former, yet they can’t imagine replacing it. It’s a symbiotic relationship, to say the least.
However, Netflix’s recent price hikes and the influx of more OTT players entering the market may prompt people to seek alternatives.
In their latest event of ‘I don’t care, I’m just here to make some big bucks,’ they are once again raising their plan prices.
In terms of global users, especially in the US market, Netflix witnessed an increase in its user base as more people opted for ad-supported plans. People chose these plans because Netflix planned to discontinue its basic plan. However, as the platform is on the brink of another price hike, the audience is not welcoming it.
A couple of days ago, a survey was conducted among a group of users, and they weren’t too kind to Netflix’s proposal of a price hike. 29% of the users stated that they would downgrade and opt for a similar ad-free plan, but a staggering 31% said they would be ready to downgrade their experience with an ad-supported plan. 39% of them also stated that they would cancel the plan.
Now, the OTT market is price-sensitive, but a minimal price change of a dollar won’t make the users turn their heads. In the modern lifestyle, Netflix is somewhat irreplaceable despite the other choices available in the market, as the streaming giant is synonymous with the streaming experience.
Netflix is also a master at flooding the platforms with continuous releases of new titles, never giving you a chance to have a dull day in terms of streaming. In certain regional markets as well, Netflix is striving to reach the pinnacle, and in the European market, it’s already the biggest giant. So even if the price becomes a concern, some big shows with big names will surely help viewers make up their minds regarding the continuation of their plans.
Also, the survey doesn’t mention specific numbers when it comes to price hikes, making it vague for the surveyed people. Besides all these, the ad-free plan in the USA already costs a whopping $15.49 a month, and if someone is paying that much for an ad-free experience, a couple of dollars’ worth of a price hike likely won’t affect them after all.
Amidst concerns of a price hike, Netflix is taking certain steps that might help them maintain a good hold on their viewers. The streaming giants are now focusing on giving the viewers a real-life experience of their shows.
By 2025, Netflix is already planning to open Netflix houses where fans can live through the experience of their shows. After their restaurant concept, this retail store idea will indeed do the trick, but the younger generation will likely be the ones who explore these concepts. For the older people, mostly around 35-50, they will have a tougher time adjusting.
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