Why netflix raised subscription prices six times

Assignment task:

In a span of less than 10 years, Netflix raised subscription prices six times (Ofek & Toubia, 2023). The company also lost 200k followers in Q1 and almost a million in Q2 in 2022 (Ofek et al., 2023). The issue at hand is ad revenue generated to lower the cost of consumer subscriptions, yet there are complications. Some questions that arise are how many ads, will the customer be annoyed by the addition of ads, and by how much could this lower costs to the consumer, etc.? For example, Hulu is a similar company to Netflix offering subscription-based entertainment. Hulu has on average 11.1 ads per hour and a CPM of $20-33, significantly lowering the subscription cost. If Netflix were to consider ads, the costs could also be significantly lowered. Other options are to offer more exclusive content or a pay-per-view option or they could enter into competition with YouTube TV and offer live TV options? Yet, the live TV options still have ads? So, I am confused about the best recommendation here in terms of profitability, customer satisfaction, and increasing sales. Any insight for the recommendation portion of the paper would be greatly appreciated!


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Marketing Management: Why netflix raised subscription prices six times
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