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Netflix raised its prices over the weekend to see how customers would react

Over the weekend, Netflix undertook a test that affected a select group of people in Australia. The company bumped up the prices for the group looking to sign up to the service over the weekend to see how they would react to the new pricing structure. The company stressed it was just a test and that no Australian customers would be affected. The pricing returned to normal on Monday.

The pricing structure for those involved in the test was:

  • $9.99 per month for the Basic plan (from $8.99)
  • $13.99 per month for the Standard plan (from $11.99)
  • $17.99 per month for the Premium plan (from $14.99)

In a statement, Netflix said:

“We continuously test new things at Netflix and these typically vary in length of time. In this case, we are testing slightly different price points to better understand how consumers value Netflix. No everyone will see this test and we may not ever offer it generally.”

Netflix didn’t reveal why it was testing the new price structure, however, the Australian government has imposed a new tax on Netflix, referred to as the Netflix tax, which could be passed on to customers. In the new financial year, Netflix will be subject to a 10 percent levy charged to international suppliers of digital products and services. It’s supposed to give local businesses an even playing field.

Source: Independent

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