Subscription-Based Pricing Models: Impact on Customer Retention – Netflix's Strategy

Subscription-based pricing has become a dominant model in the digital streaming industry, with Netflix emerging as a global pioneer in this space. This study explores the impact of Netflix’s tiered subscription pricing on customer retention across diverse markets such as India, the United States, and Europe. Through a combination of primary survey data (n=10) and secondary analysis, the research investigates how pricing, content personalization, and platform innovations influence user loyalty. A chi-square analysis confirms a statistically significant relationship between pricing satisfaction and continued subscription. The study also examines psychological factors, technological strategies, and marketing efforts that contribute to Netflix’s success in reducing churn. Findings highlight the need for localized pricing, exclusive content, and data-driven personalization as key retention drivers. This report provides actionable insights for digital platforms aiming to enhance user retention through strategic pricing models.