Gone are those days when people used to bicker over price hikes of products and services, at pubs or gatherings. With higher disposable incomes, the current generation is ready to pay more, if what they get in return is top-class.
Apple had realized this long back – the reason why it has ardent fan following despite each new model coming at a higher price tag. And now, a new survey cements this theory, with Netflix at the epicenter.
According to the survey conducted by Piper Jaffray analyst Michael Olson, Netflix’s international users will stay loyal to the streaming platform even it were to increase its subscription fees. The survey was conducted on Netflix subscribers from seven different international markets. Less than 15% of the subscribers said they would end their subscription if the company increased its fees by 20%.
Netflix’s international users will stay loyal to the streaming platform even it were to increase its subscription fees.
This does not mean customers are insensitive to price change. However, if the company provides excellent service, the customers would remain loyal and would be willing to pay more for the same.
Netflix aims to build a loyal customer base in about 200 countries by spending a hefty amount on programming. In the last three months of 2017, the company reported having close to 6.36 million subscribers in the international markets. It ended the year having 117.58 million subscribers, including 1.98 million US subscribers. The company seen its user base grow last year, despite the price hike it announced in October.
Even if companies like HBO try and match Netflix in terms of subscribers, Netflix will continue to have an upper hand in the streaming battle as it offers more original shows, compared to its rivals.
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