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How Netflix Prices the Subscription for Everyone
In Episode 115 of Pricing Power, Lucas and Luna break down Netflix's pricing strategy and how it has evolved from a single DVD plan to a multi-tier global subscription model. They focus on the 2022 launch of the $6.99 ad-supported tier in the US and the subsequent price increases for ad-free plans. The hosts explain why Netflix chose to introduce a cheaper, ad-funded option at that specific moment, how it balanced retaining price-sensitive subscribers against maximizing revenue from heavy users, and what the data on ad-tier adoption reveals about the broader streaming market. They also…
The skinny
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