Netflix price hikes to drive away nearly half a million subscribers, research says

netflix price hike study sign
Millions of Netflix users were hit with a price hike in May, and a total of 27 million people will face the higher monthly fee by the end of the year. Not surprisingly, many members won’t want to pay the new price. In fact, some 480,000 subscribers may cancel their service as a result, says Nomura Securities analyst Anthony DiClemente in a new research note, according to Variety.

Those affected by the increase are users on the two-stream HD plan, which has been raised from $9 to $10 a month. That extra dollar a month is being used to offset the cost of adding new movies and TV series to the streamer’s catalog, Netflix previously explained. However, for some users, the reason won’t matter as much as the cost.

Netflix has been forthcoming with investors about the possibility of losing subscribers due to the price increase, telling them it expects “modestly increased churn.” Nonetheless, the company has reason to believe that revenue generated by the change will have a net positive affect. After all, 480,000 users is small percentage of Netflix’s growing user base, which has surpassed 80 million subscribers.

While Q2 numbers haven’t been released, Netflix previously announced that it expected to add 500,000 U.S. subscribers during that period, as well as to grow by 2 million international members. Beyond that, DiClemente estimates that Netflix will net 2.35 million international subscribers during Q3, and 3.23 million in Q4. The numbers will be more than enough to make up for the roughly half million it may lose as a result of the price hike.

The service is reaching saturation in the U.S. market, which often leads to increased prices. “We note that this has long been a tenet of our investment thesis on the domestic business, as slowing subscriber trends are more than offset by increased monetization,” DiClemente wrote.

Most users will pay the new price, but for those who don’t want to, there’s still the option of the $7.99 single-stream SD plan or looking elsewhere.

Movies & TV

How Netflix and Disney are fighting for the future of streaming: Kids

After years of enjoying a distant lead in the streaming race, Netflix is about to be joined up front by Disney Play. These two entertainment giants are going to absolutely dominate the space, and it's your kids that will take them there.
Home Theater

Make the most out of your new Apple TV with these must-have apps

If you're looking to turn your fourth-generation Apple TV or Apple TV 4K into an all-in-one entertainment powerhouse, we can help you get started with this list of the best Apple TV apps you can download.
Mobile

Never run out of data (or money) with the best unlimited data plans of 2018

Sorting though unlimited plans isn't exactly a walk in the park. We've compared the best unlimited data plans from Sprint, T-Mobile, AT&T, and Verizon to help you decide which one is best for you.
Movies & TV

Disney Play: Here’s what we know so far about the upcoming streaming service

Disney is bringing the full weight of its massive content library to its own streaming service in 2019. How will Disney Play compare to Netflix, Hulu, and Amazon Prime? Here's what we know so far.
Movies & TV

Save a few bucks with the best free feature-length movies on YouTube

Bank account emptier than you thought? Check out our curated list of the best full-length movies on YouTube to find feature-length flicks that are free, legally uploaded, and actually worth watching.
Home Theater

Need to get rid of an unused Netflix profile? Just follow these simple steps

Need to delete an unwanted profile from your Netflix account? It's easy to do, no matter what kind of equipment you've got. Check out our handy how-to guide for step-by-step instructions.
Product Review

Bright, clear, and beautiful, the X900F proves Sony owns premium TV

Sony does it again with the outstanding X900F 4K HDR LED/LCD TV. With excellent contrast, remarkably accurate color, and punchy HDR processing, Sony proves it has the chops to make the best TVs in the world.
Home Theater

How to crack the code and find the best TV resolution for your needs

720p? 1080p? 4K UHD? What does it all mean? Choosing the best resolution for your TV can be tough, but fear not: We’ll break down the dirty details and help you figure out the right resolution for you.
Home Theater

Six sensational subwoofers that will shake any room on any budget

Whether you're a film buff or a music junkie, sometimes you just need to go lower. Luckily, we've put together a guide to the best subwoofers, so you can feel your favorite movies instead of just hearing them.
Home Theater

Jaybird’s new Tarah wireless headphones are meant to be as tough as you are

Jaybird’s new Tarah wireless sport headphones are meant to be tough enough to withstand everything athletes can throw at them while they’re in the middle of a difficult training session.
Business

Monster fires ‘toxic’ COO, alleges threats of mutilation, death

Monster, the company that turned the headphone industry upside down with Dr. Dre, is upending its own executive board, announcing in a press release that it had fired “toxic” COO Fereidoun “Fred” Khalilian as of July 27, 2018 –…
Home Theater

ATSC 3.0: The next major broadcast standard explained

ATSC 3.0 is the next major update to the broadcast standard we use today. Will this be the second coming of free, over-the-air TV? We're here to explain everything about the new standard.
Home Theater

Still listening on tinny TV speakers? Try one of our favorite soundbars

You no longer have to sacrifice sound for size when selecting home audio equipment. Check out our picks for the best soundbars, whether you're looking for budget options, pure power, smarts, or tons of features.
Home Theater

The seven best TVs you can buy right now, from budget to big screen

Looking for a new television? In an oversaturated market, buying power is at an all-time high, but you'll need to cut through the rough to find a diamond. We're here to help with our picks for the best TVs of 2018.