How to decide if Netflix is worth it — an evidence-based framework

The wrong question is "is Netflix worth it." The right question, supported by the research, is "would I sign up for Netflix today at the current price for the way I currently watch?"

The distinction matters because of the sunk-cost effect documented in Arkes & Blumer's classic Organizational Behavior and Human Decision Processes paper.

Arkes & Blumer: "Once an investment of money, effort, or time has been made, individuals exhibit a tendency to continue the endeavor… even though objective evidence suggests that abandoning it would be more beneficial." — Arkes, H. R., & Blumer, C. (1985). Organizational Behavior and Human Decision Processes, 35(1), 124–140.

The forward-looking framing strips out the past spending and asks only the relevant question: at today's price, for today's catalog, for your current usage, would you sign up today? If yes, keep. If you hesitate, cancel.

The framework applies to any subscription, but Netflix is a clarifying case because its price has risen meaningfully over the past five years (industry trade press has tracked the increases in detail) while its catalog has churned (some originals added, much licensed content removed). The Netflix you signed up for in 2018 isn't the Netflix you're paying for in 2026.

A practical implementation: divide your monthly fee by your monthly hours-watched to get cost-per-hour. Compare to other forms of entertainment you value. The math may or may not pass; what matters is that you've made the comparison consciously rather than letting auto-billing make it for you.

References

• Arkes, H. R., & Blumer, C. (1985). Org. Behav. Hum. Decis. Process., 35(1), 124–140.

Related: Streaming cost comparison · Price increases · Content removed