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Their pricing model is problematic for most households. For such a brilliant company I, for the life of me, can’t understand the arguments for not having a sing

• jerojero 4y ago
  I'll explain it to you. 4k requires relatively expensive equipment and relatively expensive internet connection. So the reasoning is as follows: What's the average income of people interested in 4k streaming? The answer is "of our subscribers they tend to be on the higher end of the spectrum" then why not upcharge them given that they are in the segment that's both interested and wealthy enough to pay for it. 4k 1 screen would have to be cheaper than the current 4k 4 screens, therefore you'd be losing money because a portion of people in that wealthy segment would be effectively downgrading their plans. The alternative point of view is "how many people wealthy enough and interested in 4k do not have a Netflix account?" I would assume they probably think most everyone in this segment does have Netflix. These are probably the kind of people that have all streaming services. If you look at Netflix strategy they're not trying to capture more people from the top; as they already have them. They're trying to capture low income people and so it makes much more sense for them to offer cheaper plans with ads rather than cheaper "premium" plans. Hope that makes sense.