Netflix customers in Australia could soon be facing steeper monthly charges.
The popular streaming service on Monday confirmed that it recently tested higher subscription prices
for new customers in Australia. The company—which has nearly 100 million global subscribers and
expanded to Australia in 2015—has reportedly tested raising prices for new subscribers by as much
as three Australian dollars (AU).
Netflix’s test resulted in some Australian customers seeing price increases for the streaming service’s
Basic plan (going from AU$8.99 to AU$9.99 per month), while Netflix’s Standard plan increased AU$2
to AU$13.99 and the Premium plan increased AU$3 to AU$17.99 per month, according to The
Netflix confirmed the tests, but emphasized that it has not yet formally announced any permanent
price increases. “We continuously test new things at Netflix and these tests typically vary in length of
time,” the company said in a statement. “In this case, we are testing slightly different price points to
better understand how consumers value Netflix. Not everyone will see this test and we may not ever
offer it generally.”
Your task: Discuss why you think Netflix conducted this test and what you think they found from that
test based on their later decisions.
Refer in particular to concepts from the Week 3 lecture topic, such as what price elasticity of demand
is and how it is calculated and used, its relationship with revenue, and relevant determinants of price
elasticity of demand.
Writing quality papers is a TOP priority. One expert takes one order at a time.
The service package includes topic brainstorm, research, drafting, proofreading, plagiarism check, citation formatting, and revisions.
We appreciate how valuable your time is. Hence, we make sure all custom papers are 100% original and delivered within the agreed time frameRead more
Each paper is written from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
We see it as our duty to follow all instruction the client provides. If you feel the completed paper does not meet your exact requirements, we will revise the paper if you let us know about the problem within 14 business days from the date of delivery.Read more
Your email is safe, we use your personal data for legal purposes only and in accordance with personal data protection law. Your payment details are also secure, as we use only reliable payment systems.Read more
You can easily contact us with any question or issues you need to be addressed. Also, you have the opportunity to communicate directly with assigned writer, e-mail us, submit revision requests, chat with us online, or call our toll-free on our site. We are always available to our customers.Read more