Netflix stock hits all-time highs as subscribers plan to stay post-pandemic

Most viewers who joined in recent months will stick around, according to a survey.

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Netflix (NASDAQ: NFLX) has seen record-setting viewer growth since the onset of the coronavirus pandemic. The streaming giant added an unprecedented 25.86 million subscribers in the first six months of 2020, nearly as many as it added in all of 2019. This left many wondering if the newly added customers would remain once the pandemic has passed. A recent analyst survey indicates that most Netflix subscribers plan to stick around.

The news drove Netflix shares to all-time highs, and the stock was up more than 11% as of this writing.

Piper Sandler analyst Yung Kim conducted a survey that sought to answer the question. The responses on the questionnaire suggest that not only will Netflix keep the vast majority of its viewers post-pandemic, but customers also seem ready to pay more for the service. 

The analyst asked 1,000 respondents, "What video services will you use after stay-at-home rules ease?" Netflix led the pack with 41% choosing it. The streaming leader was followed by Amazon's (NASDAQ: AMZN) Prime Video at 28%, while cable TV made a showing with 19% of respondents. Newer additions to the streaming fray also made an appearance, as Disney's (NYSE: DIS) Disney+ was named by 17%, and AT&T's (NYSE: T) HBO Max garnered 7%.

The analyst conducted a separate survey of 600 people and found that the majority of Netflix subscribers think the service is a good value and would even stick around if the company were to raises prices. While acknowledging that he doesn't expect a price increase this year, Kim said that subscribers would be willing to pay about $2.20 more per month, down from $2.40 in a similar survey in February. He pointed out that a higher percentage of subscribers are now willing accept a price increase, causing a dip in the amount of the acceptable increase.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena owns shares of Amazon, Netflix, and Walt Disney and has the following options: long January 2021 $85 calls on Walt Disney. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Netflix, and Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and short October 2020 $125 calls on Walt Disney. The Motley Fool Australia has recommended Amazon, Netflix, and Walt Disney. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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