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Netflix Pricing Strategy Paper

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Product Pricing Netflix Inc. The sources of revenue for Netflix mainly includes domestic (U.S) and international streaming subscriptions and domestic DVD-by-mail subscription services. Netflix follows a differential pricing strategy based on the number of screens the content can be streamed from a single account. The pricing for DVD mailing services also varies with the number of DVD a customer requests at a certain point of time. Further details of the pricing strategy according to the different segment are divulged below: • Domestic Streaming services Netflix offers a one-month free membership plan to new customers. Customers willing to continue Netflix membership after the trial period can subscribe to different plans according to their requirements. The subscriptions plans are as follows: Plan Price/month Number of Screens Video Quality Basic $7.99 1 Standard Definition(SD) Standard $9.99 2 High Definition(HD) Premium $11.99 4 Ultra-High Definition • International Streaming Services The plans for International streaming are similar to the domestic plans and the same pricing strategy is followed. However, Netflix is often responsible for changing the subscription price range in different countries as a result of which international streaming subscription prices vary from U.S. dollar equivalent of …show more content…

The prime video membership price stands at $8.99/month, a dollar less than the standard plan of Netflix. It provides 30-day free subscription to new users. Along with this, at an additional price of $2/month, a consumer can get full access to amazon prime membership which includes several unique benefits like free two-day shipping, music streaming, e-books and even one-day delivery of purchased products on Amazon in selected areas. Prime video also provides the option of downloading latest movies and TV shows for offline

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