Yes, you’re correct, there’s essentially only one tier of Netflix subscriptions — although there are zero-rated and cable bundles now too, which give you the same benefits at (arguably) different pricepoints compared to the traditional, direct-to-consumer option…
Regardless, what I mean by “upselling it to streaming subscribers” is merely the gross margin. In other words, Netflix acquires content from Starz for $X and has to sell it to consumers for $X+1, but consumers can get the same package directly from Starz for $X-1. Here’s how I described “upselling” earlier in my article:
“At that time, a full Starz subscription cost under $2 per month as an itemized part of the cable bundle — compared to Netflix’s equivalent at $8.99.”
As I went on to elaborate, that’s the trick: Finding a cohort of evangelists who value your solution (i.e. SVOD in Netflix’s case) so highly that they’re willing to pay a massive premium for it (i.e. $6.99 extra per month).
Thanks for reading
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