Survey: Nearly 40% of Netflix Customers Say They’d Cancel Subscription if Prices Rise

Netflix is fully aware that the last thing its customers want right now is another price increase. But the company is also counting on the fact that, despite what users say they want, they’re less likely to cancel their service than they are to simply keep streaming when price increases are enacted.

• Netflix has promised a price jump for its ad-free plan is coming.
• New data from Civic Science shows 39% of current or likely Netflix subscribers would cancel their account if prices rose.
• Other media CEOs have said price increases have not led to meaningful cancelation rates.

Trouble Ahead

Reports that Netflix was planning a new price hike on its ad-free streaming plans first began to circulate last week. Civic Science has commissioned a new survey on what Netflix customers think about the rumored rate hikes, and — in news that should surprise no one — its users are not thrilled about the idea that they may have to pay more for their favorite streamer soon.

The survey found that among all current or likely Netflix subscribers, 39% say they would cancel their subscription or decide not to sign up if the ad-free plans of the service were to get more expensive. That number dips a bit to 35% when the field of respondents is narrowed to just users who are already signed up for an ad-free plan of Netflix, but it’s still much higher than the company would wish. Critically, only 17% of Netflix users who pay to skip ads say they’d downgrade to the ad-supported plan instead of canceling or paying more to stay with their current tier.

Inflation is one problem that Netflix has no control over but is nevertheless having a big effect on how its users make their decisions. Civic Science’s data shows that 33% of Americans have reduced or plan to reduce their spending on streaming platforms this year and that 37% of ad-free Netflix users have become more price-sensitive in that time. This is another warning sign that a big wave of churn could accompany the platform’s next price hike.

Despite these insights, the news isn’t all bad for Netflix. If it can figure out a way to transform these price-conscious users into ad-supported streaming customers, it can collect meaningfully more revenue per user than it could from those same customers if they remained ad-free. The question for Netflix becomes whether or not it can make its Standard with Ads plan more attractive to those subscribers before it executes its price increase.

Looking for Alternatives to Netflix?

If you’re one of those users who isn’t keen on putting up with a new price hike from Netflix, there are several alternatives available that will allow you save money and stream top-quality content on-demand, with or without ads.

Paramount+ Essential allows users to stream shows like Taylor Sheridan’s “Special Ops: Lioness” and the upcoming “Lawmen: Bass Reeves,” movies such as “Top Gun: Maverick,” and even live sports like the NFL on CBS. Upgrading to Paramount+ with Showtime banishes ads, and introduces the SHOWTIME content library in addition to a live stream of your local CBS affiliate.

Peacock Premium offers “Sunday Night Football,” Big Ten football, and a huge array of other live sports, in addition to original series like “Poker Face,” old favorites like “Parks and Rec” and blockbuster movies such as “The Super Mario Bros. Movie” and “Fast X.” The service has a wealth of live news options, and users who upgrade to the Premium Plus tier will get to watch their local NBC station live on the service any time they want.