Saturday, October 10, 2015

494: NetFlix Optimization

An article about the Netflix price hike:

Netflix upped the rate of its “two-screen” plan from $8.99 to $9.99. This plan lets you watch two HD (or regular) streams simultaneously on different devices.  Netflix’s “one-screen” and “four-screen” plans remained unaffected.
Here's the thinking: If Netflix subscribers start dropping from the two-screen plans to one-screen plans, this will make them a lot less likely to share their password. No one wants a little offhand altruism to actually affect their viewing habits. That would be bad. If the resulting lack of password-sharers pushes more people to subscribe, then its worth the dollar per subscriber Netflix loses when a user downgrades because of the price increase.
Find the NetFlix subscription numbers to see how the price hike changed things. Was this a good move?

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