This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Despite Netflix's Price Hike, Consumers Want 'House of Cards'

NEW YORK (TheStreet) -- Netflix (NFLX - Get Report) may be raising subscription prices but a majority of consumers said they would still pay for the streaming service even if they have to pay more, according to an informal poll conducted by social media platform LockerDome for TheStreet.

Netflix made big news on Monday evening when the streaming service announced that it would be upping its popular $7.99 a month subscription price by $1 to $2 depending on what country users live in.

Netflix did not say when the new pricing would be implemented (the $7.99 monthly price is for streaming on two devices, it also offers an $11.99 a month price to stream on four devices), but for now the new price is only for new subscribers. Existing members would stay at the $7.99 price "for a generous time period," the company said on its earnings conference call on Monday.

Just hours after Netflix's earnings call, Amazon (AMZN) on Tuesday announced that it had signed an exclusive online content deal with Time Warner's (TWX) HBO to license some of its older, yet still popular shows, like The Sopranos, The Wire and older seasons of True Blood and Boardwalk Empire to be viewed on Amazon Prime Instant Video. Game of Thrones and HBO's newest show True Detective were not among the shows that are a part of the deal.

Must Read: Amazon Is Plunging: What Wall Street's Saying

HBO has content deals with other networks but this is the first online content deal. The move one-ups Amazon as it also ramps up its streaming service offerings through the release of Fire TV, its streaming device system competing with Apple (AAPL) TV, Google (GOOG) Chromecast and Roku.

Amazon Prime costs $99 a year compared to Netflix's annual $96 price, before the increase. And while Netflix is a few dollars cheaper for now, consumers may rethink their Netflix subscription in light of Amazon's coup.

TheStreet's poll questioned whether consumers would pay $9.99 a month for a Netflix subscription. It did not distinguish between current users and those who currently don't have a subscription. The poll was launched on Tuesday and as of Friday morning, with 903 total votes on the poll, 62% of respondents answered "Yes, because of content! House of Cards ..." Approximately 32% voted "No! I pay for another streaming service!," while 6% selected the option, "What's Netflix?"

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
NFLX $107.08 0.00%
AAPL $122.55 -0.36%
FB $94.49 -2.60%
GOOG $631.93 0.00%
TSLA $263.82 0.00%

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs