After Surveying 1,500 Subscribers, Piper Says Netflix Has Pricing Power

Piper Jaffray analyst Michael Olson says his firm's survey of 1,500 U.S. Netflix (NFLX) subscribers shows the streaming service has pricing power.

The survey indicated that only 3%-4% of U.S. subscribers may cancel due to the price increase faced by long-term users who are being transitioned to $9.99 per month this year, Olson tells investors in a research note. This would be a negative impact of 2%-3% on the worldwide streaming subscriber base of 80M, the analyst points out.

Olson adds that 55% of the subscribers surveyed indicated that they would not cancel Netflix until it reaches a price of greater than $15 per month. He keeps an Overweight rating on the shares with a $122 price target. Netflix closed yesterday down $2.39 to $94.67.