Skip to main content

Consumers now dislike Netflix as much as Blockbuster

netflix-envelopes
Image used with permission by copyright holder

In a study this week by YouGov BrandIndex, consumer perception of Netflix plummeted after the company announced a 60 percent increase in pricing by splitting streaming and DVD rentals. YouGov measures the buzz around brands on a scale from -100 to 100. Previous to the pricing announcement, Netflix dominated rivals such as Redbox, DirecTV and Blockbuster with a 39.1 score on the chart. Since the announcement, consumer sentiment plummeted to -14.1 and Netflix is now tied with the previously bankrupt Blockbuster at -6.

netflix redbox blockbuster directv buzzRival Redbox has seen a sizable bump nearly doubling the perception of the brand without having to pursue any marketing. Blockbuster hasn’t seen any major bump in perception since offering  a 30-day free trial for Blockbuster Total Access in response to the Netflix pricing. While the Total Access 1-disc-at-a-time plan is $2 more than Netflix’s new pricing structure, consumers have the ability to drop off rentals at physical store locations and there is no 28-day window on waiting for new releases. The plan also includes video game and Blu-ray rentals at no extra cost.  However, Blockbuster’s recent announcement of another 200 store closures isn’t likely to help consumer’s opinion of the brand.

Recommended Videos

Morgan Stanley also released a study this week regarding Netflix consumer loyalty after the price increase. Approximately 50 percent of people surveyed are currently using the $9.99 one-DVD-at-a-time plan with unlimited streaming. Of that segment, more than one in four planned on canceling Netflix service when the price increase goes into effect on September 1. Thirty one percent plan on switching to the streaming only plan while 13 percent are opting for the one-DVD-at-a-time plan. Only 15 percent are planning on upgrading to the more expensive $16 hybrid plan. Promised cancellations were a bit higher with consumer using the two-DVD-at-a-time plan, but fell to about 12 percent for those with three discs or more.

If these numbers from Morgan Stanley represent an accurate depiction of Netflix’s subscriber base after September 1, the company will see a 22 percent decrease in subscription revenue and a 2 percent decrease in revenue per user. Morgan Stanley believes that the survey results could be skewed due to temporary consumer outrage over the price increase and actual cancellation numbers are likely smaller.

Mike Flacy
By day, I'm the content and social media manager for High-Def Digest, Steve's Digicams and The CheckOut on Ben's Bargains…
The 6 best OLED TVs for 2024
sony bravia 8 oled

Editor's note: The biggest shopping day of the year — Black Friday — is almost here, and there are already TV deals you can grab. You can get Samsung's 65-inch S90C for only $1,000. It's a deal that we think makes it the best OLED to buy right now. You can save on more than just TVs on Black Friday. Check out our other Black Friday deals for more sales on headphones, streaming devices, phones, and more.

If you're on the hunt for the best TV for whatever you're into — movies and TV, sports, or gaming (check out our list of the best gaming TVs) — sitting at the top of the TV pyramid are OLED TVs. In lieu of traditional LED backlighting, OLED TVs use millions of self-emissive pixels (that create their own light and are not backlit) to create rich colors, inky blacks, and zero light blooming — in short, arguably the best picture in the business. Over the last several years, LG has been the predominant manufacturer of OLED TVss, but now the company competes with Samsung and Sony in the OLED marketplace. 

Read more
Tubi’s new Scenes feature plays clips to help you find your next binge
A mobile device in a hand with the Tubi Scenes feature.

Tubi, Fox's free ad-supported streaming TV service (FAST), boasts a content library of more than 250,000 movies and TV episodes and 200 live TV channels, which makes finding something to watch a tricky proposition. Today, however, Tubi's 81 million active users are getting a new way to help them find something to watch in the form of Scenes, a feature that serves up short clips of your favorite shows and movies on your mobile device.

Scenes, which can now be found in the Tubi app's navigation bar on iOS and Android devices, serves up access to "tens of thousands" of clips of a user's favorite shows and movies that they can scroll à la TikTok or Reels, all based on the content that they like and add to their "My List" inventory.

Read more
Hurry! This Dolby Atmos soundbar won’t be 31% off forever
The Vizio Elevate 5.1.4.

Let’s face it: not every home can accommodate a sprawling home theater system. Fortunately, companies like Vizio have been getting better and better at consolidating much larger speaker configurations into easier-to-arrange soundbar bundles. And today, we’d like to direct your attention to this great offer we found while looking through Amazon deals:

Right now, when you purchase the Vizio Elevate 5.1.4 (P514a-H6), you’ll pay $550. At full price, this model sells for $800.

Read more