SUBSCRIPTION-BASED PRICING MODELS: IMPACT ON CUSTOMER RETENTION NETFLIX'S STRATEGY

In much the same manner, subscription is an approach that stands out among new methods of generating revenue in today's businesses transformed by digital platforms, thus paving ways for newer forms of revenue generation based on ongoing customer engagement.Many industries have adopted subscription-based pricing as the dominant approach, including digital entertainment, software as a service (SaaS), e-learning, and media.This is because subscription-priced businesses thrive in predictable revenues and build long-term relationships.The present study aims at studying the effects of subscription-based pricing models on customer retention through the Netflix case.In the mixed-method research scenario, qualitative and quantitative approaches jointly deliver a comprehensive picture of the subject under observation.Important variables that undergird the analysis include customer churn rates, tiered pricing structure, viewing behaviour, and recommendation algorithms among others.Also integrated into the study are user sentiment analysis, predictive modelling, to analyse the impact of their strategic decisions on subscriber satisfaction and retention over time.The results imply that the provision of tiers of pricing locked together with personal proposal of contents, flexible subscription models, and timely content releases adaptively priced to different markets further enhance loyalty while decreasing churn.In conclusion, it has been established that customer-driven pricing based on behavioural data indicators and perception of value is critical for marketing savvy engagement in the highly competitive digital marketplace.These insights can be of great relevance in providing a roadmap to digital service providers on how to enhance their subscription schemes for better retention, competitive advantage, and sustainable growth in the new digital economy.