Netflix Index Strategy
Price your subscription app using Netflix's global pricing as a purchasing power proxy. Best for subscription-based apps targeting digital-savvy markets.
The Netflix Index strategy is available on the Start, Growth, and Scale tiers.
How It Works
The Netflix Index strategy uses Netflix's Standard plan pricing across countries as a proxy for purchasing power. Since Netflix is a subscription product sold globally, its pricing decisions reflect local market conditions and willingness to pay for digital subscriptions.
BasePrice compares Netflix pricing across countries to calculate a purchasing-power factor, then adjusts your base price to reflect what each market is accustomed to paying for digital subscriptions.
Example
With a base price of $4.99 USD:
| Country | Netflix vs US | Adjusted Price |
|---|---|---|
| 🇨🇭 Switzerland | More expensive | CHF 5.09 |
| 🇬🇧 United Kingdom | Cheaper | £2.87 |
| 🇧🇷 Brazil | Much cheaper | R$7.70 |
| 🇮🇳 India | Much cheaper | ₹69 |
When to Use
- Subscription apps — Netflix pricing is optimized for subscription businesses
- Digital-first products — More relevant than Big Mac for software/content
- Tech-savvy audience — Netflix targets a similar demographic to most apps
- Moderate aggressiveness — Generally produces larger discounts than Big Mac but less extreme than GDP-Adjusted
Trade-offs
- Snapshot data — Based on a point-in-time capture of Netflix pricing, updated periodically
- Netflix-specific factors — Netflix pricing includes content licensing costs and local competition, which may not apply to your app
- Limited to countries where Netflix operates
Data Source
Pricing data is based on Netflix Standard plan prices across ~100 countries, updated periodically.
Tier Requirement
Available on Start, Growth, and Scale tiers.