33% of Cowen Q4 Survey Respondents Willing to Pay $2 More for Netflix

Any near-term headwind from Netflix’s price increase, announced Friday (see 2201140056), won't likely be “meaningful,” Cowen analyst John Blackledge wrote investors Wednesday, previewing the streaming service’s Q4 earnings release Thursday. Cowen survey data showed 60% of respondents said they would be willing to pay more for Netflix in Q4 2021, up from 55% in Q4 2020; the percentage of respondents willing to pay an additional $2 or more per month for Netflix rose from 28% to 33%. The survey showed younger viewers watch Netflix “most often,” but TikTok is gaining mobile viewing share. Netflix spent several quarters working through “pull forward” of subscription adds from the COVID-19 pandemic, Blackledge said. Original content volume picked up at the end of 2021 “and should drive higher engagement & potentially lower churn.”