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.”
The firm also says that Netflix still remains “excellent value for money” when compared to incumbents.
This week, Hub Entertainment Research also revealed that 69% of consumers questioned after the US price hike said that they would keep their current subscription.
Netflix adapts Christopher Demos-Brown play American Son
The streamer announced today that is will exclusively launch American Son, based on the 2018 play from Christopher Demos-Brown and starring Scandal lead Kerry Washington.
The story centers on interracial parents who reunite in a Florida police station to search for answers about their missing teenage son.
Tony award winner Kenny Leon will direct and produce, with Jeffrey Richards and Rebecca Gold also serving as producers. Washington and her executive VP of development and production Pilar Savone will also produce under Washington’s banner Simpson Street.
“American Son powerfully explores themes of family, love and identity,” said Cindy Holland, Vice President of Original Content. “We are honored to work with Kerry Washington, Kenny Leon, Christopher Demos-Brown and the entire cast to bring this story from the Broadway stage to our members around the world.”
Production begins in New York City this February.