A new study has suggested that almost half of Netflix’s subscribers will be likely to cancel their subscription if the streaming service increases the cost of their ad-free tier, which has been touted by Netflix to be on the horizon.
The streamer recently announced that they will be raising the price of their ad-free tier as soon as the SAG-AFTRA strikes come to an end. As of yet, it’s unclear how much Netflix plans to increase the cost, but they are definitely considering it.
In a new study by CivicScience, it was found that 39 per cent of Netflix users said that they would cancel their subscription outright if the streamer were to increase the price of their ad-free tier, while 31 per cent of them said they would subscribe to an ad-free tier.
29 per cent of Netflix users said that they would be willing to continue paying their subscription fee even if it were to rise. Around 4,000 participants responded to the study, and several of them were ad-free subscribers who were also asked what they would do.
The results showed that 35 per cent would cancel their Netflix membership, 17 per cent would downgrade to the ad-supported tier, and 48 per cent would continue with the increased fees.
It’s likely that any price increase will take place in the US and Canada first of all. In the US, the current cost is $15.99 for no ads and two streams, while the Premium membership is $19.99 for no ads and four streams.
Netflix has also been clamping down on sharing passwords, making members pay more if they wanted to add other accounts to their membership.