Netflix users are highly loyal
Why do users turn to Netflix?
As streaming services have proliferated over the past decade, Netflix seems to have cemented itself as viewers’ dependable go-to platform. Customers have high standards for content on Netflix—so much so that when they can’t find something to watch on the platform, they’re more likely to give up and turn off the TV than subscribers of other services by 14 percentage points. Meanwhile, when other platforms’ users can’t find satisfying content, 59% choose to click over to other streaming platforms, whereas only 32% of Netflix users do the same.
How has Netflix nurtured this loyalty? First, Netflix users have a better chance of finding content that appeals to them: They are 10% more likely to report they found something to watch when browsing than other streaming customers. Netflix also has a more enjoyable search experience. Users who find something to watch give Netflix a Net Promoter ScoreSM—a measure of their likelihood to recommend a platform for browsing content—that’s 7 points higher than the average streaming provider. And finally, Netflix users are more likely to watch for extended periods of time—in fact, 26% will stream for more than two hours vs. just 14% of users of other services. Users of other services are also more likely to abandon watching in under 30 minutes, suggesting they aren’t happy with the content.
Netflix’s ability to maintain and clearly demonstrate its value to customers will be critical this year as it implements a new pricing structure for shared accounts in the US. Recent NPS Prism® data shows that 30% of people who have access to Netflix are borrowing a password from someone else. If successful with its new policy, the provider will retain and convert a high percentage of these subscription sharers into paying customers.
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Net Promoter®, NPS®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.
NPS Prism® is a registered trademark of Bain & Company, Inc.