Could Netflix raise prices even higher? 21% of users would pay $16 or more per month

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Netflix To Hike Its Price

Netflix is in the midst of shifting millions of U.S. subscribers to its standard $10 per month two-stream HD plan — and it blamed higher churn and lower sub growth in the second quarter in large part on the price hike.

But a new survey indicates the No. 1 subscription VOD provider still has a lot of pricing power left in its bag of tricks: 21% of Netflix customers said they would pay $16 or more per month for the streaming service, according to a survey by TiVo's Digitalsmiths unit, which polled 3,114 adults in the U.S. and Canada in Q2 2016.

At the same time, 29.3% of respondents said they would refuse to pay any more than for Netflix they're currently shelling out, per the Digitalsmiths survey. And 39.1% said they would pay, at most, $12-$15 monthly (while 10.6% did not provide an answer).

Related: $6 Billion Reasons Netflix Can't Afford to See Subscriber Growth Stall

For now, don't expect Netflix to make major adjustments on how much it charges — the risk of a massive subscriber exodus outweighs any upside. One disgruntled Netflix user is even suing the company over the latest price increase, alleging the company promised him a lifetime guarantee that rates would not go up.

But the survey results show that in the years ahead, as Netflix keeps adding more exclusive and original content — next year it plans to spend more than its projected $6 billion budget in 2016 — it will have leeway to raise prices further.

Netflix's potential runway to raise prices is also clear when you look at what people spend on pay TV. About 35% of consumers Digitalsmiths surveyed said they spend $100 or more on cable or satellite TV per month, while 49% pay $51-$100 per month; 16% said they spend less than $50 on pay TV.

Still, people today spend a lot more time watching conventional TV than streaming video. About 59% of SVOD users watch two hours or less of content on those services per day; only 4.8% watching 5 or more hours daily, according to the survey — while the average U.S. household watched about 4.5 hours of traditional TV each day in the first quarter of 2016, per Nielsen. Of respondents who use SVOD services, 92.8% do so on a weekly basis.

Meanwhile, the Digitalsmiths survey found that 10.4% of Netflix and other SVOD users don't pay for their service because they use another subscriber's account. While a recent federal court ruling technically makes unauthorized sharing of passwords to an internet service illegal, Netflix and other providers say such multi-user access is kosher within certain bounds.

Check out more from Netflix in the gallery below!

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400303 03: Ready-to-be-shipped DVDs roll down an assembly line January 29, 2002 in San Jose, CA. The online DVD rental site Netflix.com has 500,000 subscribers who can rent, receive and return unlimited discs per month by mail. (Photo By Justin Sullivan/Getty Images)
400303 01: Netflix.com Chief Executive Officer Reed Hastings holds a ready-to-be-shipped DVD January 29, 2002 in San Jose, CA. The online DVD rental site has 500,000 subscribers who can rent, receive and return unlimited discs per month by mail. (Photo By Justin Sullivan/Getty Images)
400303 05: Packages of DVDs await shipment at the Netflix.com headquarters January 29, 2002 in San Jose, CA. The online DVD rental site has 500,000 subscribers who can rent, receive and return unlimited discs per month by mail. (Photo By Justin Sullivan/Getty Images)
Netflix CEO Reed Hastings gives a keynote address, January 6, 2016 at the CES 2016 Consumer Electronics Show in Las Vegas, Nevada. AFP PHOTO / ROBYN BECK / AFP / ROBYN BECK (Photo credit should read ROBYN BECK/AFP/Getty Images)
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