September 21, 2011
New Survey from Magid Advisors Evaluates Attitudes Of Netflix Subscribers and Looks at The Company's Challenging Prospects Ahead: Subscriber Exodus May Continue — And Redbox Is Reaping The Rewards
The survey of 1,000 U.S. consumers, including over 700 subscribers and over 350 non-subscribers, was conducted the week of August 22, 2011, right before the new price change. Among the findings:
- 9% of current subscribers say they are going to cancel instead of switching to a new plan
- An additional 7% of current subscribers say they will cancel, unrelated to the price change
- Beyond the 16% likely to churn, another 14% say they are seriously considering cancelling
Redbox stands to benefit from Netflix churn — a majority of Netflix subscribers use Redbox.
- Almost 60% of Netflix subscribers use Redbox. Almost 30% of them indicate that they will use Redbox more in the future due to the price changes from Netflix.
The Magid Netflix Study captures consumer attitudes, behaviors and intents that are highly relevant for those invested in the media industry. The study covers:
- New proprietary growth estimates for U.S. subscribers of Netflix that are lower than current Wall Street growth projections.
- Consumer sentiment on new pricing including which subscription plans they would select
- Driving factors behind service satisfaction and Netflix value proposition
- Intention to cancel Netflix service in the next 12 months due to pricing
- Consumer segments most sensitive to pricing change
- Consumer interest in subscribing to alternative online streaming video services
- Overall satisfaction of DVD offerings compared to streaming offerings
- Time spent watching streaming content compared to DVDs
- Consumer interest in using movie kiosk services such as Redbox as a Netflix alternative