Piper survey shows most Netflix subscribers willing to pay more
Piper Jaffray analyst Michael Olson says his firm's survey of 1,100 domestic Netflix subscribers shows that most would be willing to pay more to remain subscribers of the service, with some willing to pay significantly more. Specifically, 64% of subscribers surveyed indicated that they would not cancel Netflix until it reaches a price of greater than $15 per month. Among those, 23% said they wouldn't cancel until pricing reached greater than $20 per month, and 5% would only cancel if pricing was well above $20 per month. The conclusion is that Netflix could raise monthly prices to $15 or more today and approximately two-thirds of subs would absorb the increase and remain on the service, Olson tells investors in a research note. Compared to a similar survey taken in mid-2016, a higher percentage of subscribers are willing to pay a higher monthly fee, suggesting Netflix content has improved, the analyst adds. Olson reiterates an Overweight rating on Netflix with a $367 price target. The streaming service closed yesterday up $2.07 to $328.53.