Internet: Applications and Media | Rob Sanderson, Managing Director, Senior Analyst | October 7th, 2016 (Read Report)

We recently commissioned the MKM Intelligence Community to survey nearly 1,200 current and
past Netflix subscribers for insight on member opinion of price increases. We believe that survey
results: (1) are about in-line with Street expectations for churn, assuming that survey results would
also embed normal churn, and (2) reinforce our view that churn is not competition-related and only
a transitory issue.