Netflix prices are going up. This week, the streaming service raised the prices of all three of its US plans, constituting a jump of between 13 and 18 percent – the biggest price hike since Netflix launched in 2007. Mark Billige, pricing specialist and Managing Partner at Simon-Kucher & Partners, explains how Netflix’s smart approach is key to gaining customer acceptance.
The growth of the subscription economy has become incredibly evident in B2C markets. However, the move to subscription based pricing models is also beginning to grow rapidly in B2C industries. When done right, subscription pricing drives recurring monthly revenue and increases customer intimacy. In this article, the author explores factors to consider before moving to a subscription model and best practices for implementing this change successfully.
In a market with increasing competition and decreasing customer loyalty, companies are increasingly moving towards more flexible and predictable subscription models and searching for new ways to engage customers with subscription models over the long term. In this article, the authors present five tips to overcome the challenges of moving to a subscription model and defining a successful pricing strategy.