Please ensure Javascript is enabled for purposes of website accessibility

Would You Pay Netflix Another $9.99 a Month?

By Rick Munarriz – Updated Apr 6, 2017 at 3:04AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

As you curb your enthusiasm, Netflix will test its pricing elasticity.       

Now that breathtaking results have proved Netflix (Nasdaq: NFLX) to be recession-resistant -- if not outright resilient -- the company may have bigger fish to fry.

"Imagine Netflix gave you a way to instantly watch HBO series and movies streamed from the Internet to your computer of TV," poses a member survey, as retold by HackingNetflix.com. 

Members are then asked to consider paying $9.99 a month more, for streaming access to original HBO shows such as Curb Your Enthusiasm and Entourage, as well as access to recent home releases such as I Am Legend and 27 Dresses

The survey emphasizes that the optional add-on wouldn't disrupt the existing service. Netflix subscribers could still rent their favorite HBO shows as they're released on DVD, and the online streaming service that offers a limited selection of the available catalog is still included at no additional charge.

Is Netflix actively in negotiations with Time Warner's (NYSE: TWX) HBO, or is this just a trial balloon, perhaps with a different studio?

Well, does it matter? The key takeaway is that Netflix is seriously considering the elasticity of what a consumer is willing to pay for a smorgasbord of filmed entertainment.

This would have favorable implications for rental companies such as Blockbuster (NYSE: BBI) and streaming heavies such as Apple (Nasdaq: AAPL) and Amazon.com (Nasdaq: AMZN). It could also be problematic for companies such as Comcast (Nasdaq: CMCSA), if customers begin kicking their cable providers to the curb and begin cherry-picking their televised content.

Won't this also ultimately threaten Netflix? Probably. It won't be long before studios cut out the middlemen and deal directly with the end users, especially for a studio-specific product like the one being proposed.

Near-term winners may be long-term losers. Long-term winners may be near-term losers. Plot twists are what make the good films great.

Stay tuned.

Other Netflix-ish headlines:

The Netflix survey is internal to the company, but let's hash this out right here. Would you pay Netflix another $10 for HBO on demand? Let Rick know in the comment box below.

Netflix, Amazon.com, and Apple are Motley Fool Stock Advisor recommendations. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz has been a Netflix shareholder -- and subscriber -- since 2002. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Netflix, Inc. Stock Quote
Netflix, Inc.
NFLX
$226.41 (-4.49%) $-10.64
Comcast Corporation Stock Quote
Comcast Corporation
CMCSA
$31.84 (-1.94%) $0.63
Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.43 (-1.51%) $-2.31
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$113.78 (-3.01%) $-3.53
Time Warner Inc. Stock Quote
Time Warner Inc.
TWX

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.