OnDemand WTP Pricing Research

Netflix price hikes likely to hit UK, says pricing strategy firm | Digital TV Europe

Simon-Kucher, a pricing strategy firm, is expecting to see Netflix’s US price hike extend to the UK and elsewhere with few cancellations.

The firm says it “expects to see price increases rolled out in the UK and elsewhere, with Netflix taking a localised approach based on their learnings in the US”.

Netflix’s increased investment in expanding its content collection and original titles will mean that many will stay loyal to the streamer nonetheless, according to the firm.

“Price is the most powerful and sure-fire way for a company to generate cash – far quicker and more potent than other initiatives to accelerate subscriber growth, most of which require further investment,” says Simon-Kucher,

“Price increases cost little to execute and have massive impact. This way, Netflix can rely on tolerant customers, and thanks to the well-deserved cash infusion, continue enhancing viewer experience. In the long-run, everybody wins.”

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Netflix price hikes likely to hit UK, says pricing strategy firm – Digital TV Europe.

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