Magid: 16% of Netflix subscribers plan to cancel subscription
About 16 percent of Netflix (Nasdaq: NFLX) subscribers are likely to drop the service, according to a survey conducted by Frank N. Magid Associates.
Data based on Magid report. Click here for a larger view of this chart.
Magid, which conducted the survey the week of Aug. 22, soon before Netflix's increased subscription prices went into effect, said 7 percent of subscribers said their decision to cancel service was unrelated to the price change. The research firm said 9 percent of Netflix customers planned to cancel service, rather than switch to a new pricing plan.
The Magid survey, which was based on telephone calls to 1,000 Netflix subscribers, is another black eye for Netflix. It has been pummeled this week for its price hike, and its move to market its DVD-by-mail service under the Qwikster brand.
But it's fair to view telephone surveys from Magid and other researchers with some skepticism. Some cable subscribers who are asked in surveys if they plan to cut the cord on pay TV say they will drop service, but not all follow through on that action. Similarly, many Netflix customers may tell a researcher that they will cancel their subscriptions out of frustration with a price hike, but not all will be willing to drop the top streaming video provider.
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