Why you think netflix conducted this test

Assignment Help Business Economics
Reference no: EM132482010

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 Australian.

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." Addendum from the lecturer: They increased the prices to $9.99, $13.99 and $17.99 respectively from 1st July 2017. And in 2019 they increased the premium plan to $19.99, while leaving the other two prices constant.

Discuss why you think Netflix conducted this test and what you think they found from that test based on their later decisions.

Referwhat price elasticity ofdemand is and how it is calculated and used, its relationship with revenue, and relevant determinants of price elasticity of demand.

Reference no: EM132482010

Questions Cloud

Websites of 2 of the most successful hotel companies : After looking at and researching the sites as a marketer and as a customer. Which one in your view does better marketing its products
How managerial accounting help managers to improve operation : How either financial accounting helps external stakeholders make informed decisions or how managerial accounting helps managers to improve operational
Firm from perfect competition to monopolistic : With your own example, discuss in detail with the help of graphs the transition of a firm from perfect competition to monopolistic.
Measurement of a country economic growth : What are some weaknesses in using GDP as a measurement of a country's economic growth?
Why you think netflix conducted this test : Discuss why you think Netflix conducted this test and what you think they found from that test based on their later decisions.
Determine how long will take timothy : Determine how long will it take Timothy before he has the necessary money for a down payment for a home? Assume j12= 3.8 %
Cobb douglas production function : A factory that you are managing has an hourly production process that can be represented by 0.5? 0.50 the following Cobb Douglas Production function: Q = 20K? L
Contract law essentially all about legally binding promises : Contract the law is essentially all about legally binding promises. Consider the types of terms of contract and implications of valid contracts
Find the use of labour and capital in the long run : Find the use of labour and capital in the long run. Explain the difference between the Short Run and Long Run in

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd