Simon-Kucher, a pricing strategy firm, fully expects to see Netflix’s US price hike extend to the UK – without suffering a deluge of subscriber cancellations.
The firm said 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 library and original content will mean that many will stay loyal to the SVoD service 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,” the company said, “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.”