Netflix recently made headlines when the streaming service reached 100 million subscribers. According to a new streaming video industry report, Netflix enticed many of those subscribers through its free trial program. Netflix is apparently so confident in their ability to reel in new customers that the service offers a surprising whole month of free membership in order to lure in new paid subscribers with its top-shelf original and licensed content. Perhaps surprisingly, market research shows that Netflix is believed to retain one-third of all users who sign up for a free trial period, claims a new report issued by market research and consulting firm Parks Associates.
While it is possible through various means to sign up for multiple free trials, the goodness of humanity apparently wins out when it comes to Netflix. Speaking to CNET, Parks Associates senior analyst Glenn Hower claims that Netflix’s free trial offer is rarely abused by streaming video consumers:
There is a potential for free trial abuse, but only roughly 1 percent of consumers are ‘serial trialers.’ Most consumers use trials for their intended purpose of trying out a service before deciding whether or not to continue as a paid subscriber.
It’s no surprise that users who try the service for a month will get hooked, especially with the unrelenting onslaught of new material that Netflix manages to keep rolling out. It’s no surprise that Netflix is currently leading its closest competitors in paid subscribers by far. Take one look at the company’s customer satisfaction ratings, and it’s clear why Netflix is currently the standout winner.
Ultimately, Netflix offers not only the best content but one of the sleekest interfaces in streaming video, giving subscribers one the most convenient and consistent user experiences out there. Even their video player is designed to allow you to seamlessly binge episode after episode without lifting a finger or watching a single intro. No wonder Netflix CEO Reed Hastings thinks his company’s biggest competitor is “sleep.”