As Netflix tested these changes in other parts of the world first, they had sufficient metrics to know how this change will affect their user-base. They are expecting an increase in subs and in income.
I cancelled my sub (4 screens), which was shared among 5 people. Two of these decided to resubscribe by themselves, although not in the 4 screens configuration. From my calculations this means:
Cancellation of a 18EUR subscription
2 new customers on Standard, 13EUR each
Netflix took a profit of 6EUR from this operation, while gaining an extra subscription.
I think this matches their “100% increase in subs” metric. The only question is how many others who resubscribe will go for the 2 screens (Standard) sub, or the 1 screen (Basic) sub. With basic, the same situation would result in a ~2EUR decrease in revenue.
As Netflix tested these changes in other parts of the world first, they had sufficient metrics to know how this change will affect their user-base. They are expecting an increase in subs and in income.
I cancelled my sub (4 screens), which was shared among 5 people. Two of these decided to resubscribe by themselves, although not in the 4 screens configuration. From my calculations this means:
I think this matches their “100% increase in subs” metric. The only question is how many others who resubscribe will go for the 2 screens (Standard) sub, or the 1 screen (Basic) sub. With basic, the same situation would result in a ~2EUR decrease in revenue.