SOURCE: Phoenix Marketing International

Phoenix Marketing International

October 03, 2011 11:13 ET

Phoenix Marketing International Finds that Almost Half of Netflix Subscribers Report Being Likely to Drop Service Due to New Price Plans

HORSHAM, PA--(Marketwire - Oct 3, 2011) - A recent poll of teens, young adults, Generation X and Generation Y individuals by Phoenix Marketing International uncovered just how much self-inflicted damage Netflix incurred from its recent pricing action. Customers plan on expressing their anger with their wallets; with 48% of Netflix customers having stopped using the service or planning to discontinue using the service due to the change in price plan. Additionally more than 80% of the remaining customers said they have or plan to change to a streaming only or disk only option.

Commenting on the phenomena, John Schiela, Co-President of Phoenix Converged Technology & Media stated, "While Netflix may have needed to change its pricing plan for long term profit and feasibility, perhaps a slower cut-over and grandfathering of current customers may have served to better protect their brand and market position. Instead, they have opened the door to competitors during a time of industry and economic turmoil."

Indeed, competitive action has been swift in coming. Dish Network announced a Blockbuster branded movie streaming service that will be available on October 1. This service promises far more movie titles than Netflix. Amazon Prime, another Netflix rival, just announced a new deal with Fox for increased content allure. Meanwhile, Netflix is fighting back touting its new exclusive agreement with DreamWorks. Unfortunately for Netflix, the impact of this deal will not begin until 2013.

The media market is rapidly evolving with over 25% of individuals now renting Blu-rays and almost 40% streaming TV and movies. With over 40% of streamers reporting Netflix as their provider, they have put at risk an enviable market position.

"There is a streaming Renaissance going on in the Entertainment industry. While it is difficult to predict who the winners will be, it is certain that those firms that do not strategically embrace this movement will not make it over the finish line," stated Edye Twer, Co-President of Phoenix Converged Technology & Media.

To comment on this story please visit Phoenix's CT&M Blog ( Phoenix will be conducting a free webinar presenting study highlights on October 27th at 1:00PM EDT. To register for this free event please go to

All data was from Phoenix's Convergence 360 study, an online study with over 1,000 interviews conducted among teens, young adults, generation X and Y. The C360 addresses the convergence of the Entertainment, Technology and Telecommunications industries and how consumers are reacting. Sample for this study was from Panel Direct Online (a quality B2B, B2C, Patients, Caregivers, and Medical Professional panelists for all types of research since 2003) and United Sample (one of the world's fastest growing technology and online sampling companies, providing global survey panelists and an innovative sampling platform for use in market research).

To receive more information on Phoenix's Convergence 360 Study, please call 215-395-6655 or email:

About The Phoenix Converged Technology and Media Practice

The Phoenix Converged Technology and Media Practice (CT&M) is a division of Phoenix Marketing International (PMI), one of the fastest growing marketing services firms in the United States and partner to many of the largest companies in the financial services, pharmaceutical, technology and telecom, consumer package goods, media and entertainment, automotive, and travel and leisure industries worldwide.

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