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The psychology behind the way Netflix raises prices

October 23, 2017

Unlike seven years ago, the move pushed Netflix’s stock to new heights. The key, for Netflix’s management, was learning to raise prices without spooking subscribers—by doing so in small and infrequent doses.

“Any time a service increases its price, that change causes consumers to re-assess their perceived value of the service,” senior director of research at the firm Parks Associates, tells Quartz. “While most will continue as subscribers, some will consider other options or discontinue their subscription. The key for Netflix is to not cause consumers to enter the evaluation or shopping cycle too often.”

From the article "The psychology behind the way Netflix raises prices" by Ashley Rodriguez.

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About Parks Associates

The psychology behind the way Netflix raises prices

Previously In The News

Wowza Appoints Streaming Industry Veteran Chris Drake as New Chief Revenue Officer

U.S. Households Now Watch Over 43 Hours of Video Weekly, with Half Using Free Ad-supported Services Like Pluto TV, Tubi, & More

Report: Households Say Internet Service Meets Their Needs, Despite New Demands

Parks: 50% of U.S. Video-Viewing Homes Use Ad-Supported Streaming Services Weekly

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