Both subscribers and non-subscribers to Netflix who were surveyed by Jefferies indicated that price was a concern: current subs were more likely to cancel their service if the monthly rate went up, and non-subs cited the price as the biggest reason to not sign up for the SVOD service.
Further, the licensed content in Netflix’s library may be more valuable to consumers than Netflix originals, the firm said. “Surprisingly, the survey highlighted that both subscribers & non-subscribers may be more attracted to current TV / movies than NFLX originals. Only 12% of subscribing respondents indicated that a loss of interest in original content could lead to the cancellation of their subscription,” Jefferies said in a research note to investors.
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