BINGE WATCHING CHRISTMAS MOVIES? HOW WILL THIS HELP NETFLIX?

There is a continuous rise in subscription-based businesses. Nowadays Subscription economy is growing rapidly these days This subscription model is beneficial for both costumers as well as companies. It offers more convenience and affordability for costumers. In present time, Industries everywhere have started to adopt subscription based models. A subscription based model is built on the idea that companies can capitalize on the compounding value of customer relationships through subscriptions. According to McKinsey , 49% of shoppers are using subscription service currently. To flourish this model more, companies need to create a strong relationship with customers by understanding what people value about their products. companies like Dropbox, Shopify, MailChimp have seen impressive growth rates in their respective markets by using subscription as their primary revenue model. When big brands like Adobe and Microsoft adopt this model, it signals to others also that subscription is not only profitable but also legitimate.

Netflix is also a great example of subscription based business model that makes money online. It is changing the way we consume traditional media. From series like Stranger Things, Narcos and Black Mirror Netflix have been able to become a titan of the media industry, with more than a hundred and fifty thousand members across the globe.

With three simple subscription plans (basic, standard and premium) from $8 to $14, Netflix has been able to become a multi-billion dollar unicorn with more than a hundred fifty billion. Not only that, recently released show "Squid Game" turned into a worldwide phenomenon and reportedly created $900 million worth of value for the company.

They started with renting boxed products through a mail service nationally (in the US) and shifted to delivering on-demand entertainment catering to diverse needs globally. The ‘all you can eat subscription’ that Netflix offers, lets you watch your favorite shows anywhere and at any time you want.

Netflix's stock price has also increased in tandem with the company itself as it has consistently grown from a popular entertainment service to a dominant streaming platform, active in over 190 countries.

Netflix generated $24.99 billion in 2020. As of June 2021, Netflix has generated $14.5 billion in revenue so far in 2021.

Netflix has 209.18 million subscribers worldwide. When a company becomes part of subscription based economy, it need to provide a consistently positive customer experience to keep customers coming subscription based pricing attract more customers since charging customers $25 per month is more attractive to consumers than charging them $500 at one shot and customers also enjoy the increased or extra benefits a company provide as it's business expands or they improve their products over time for example, Amazon prime subscription not only give customers the benefit of watching web series and media ,it also satisfies them with free and instant delivery on every product on amazon.com, they get ad- free music as well as great discount deals on products. With a subscription-based business model, customers make payments to companies on a regular basis. Subscription-based products and services make this much easier, allowing companies to provide free versions in the hope of enticing clients into subscribing to the full package. Disney-Hotstar give customers a month free trial to entice them with their variety of live channels and entertainment shows. Subscription based businesses are overall strengthening the economy and is an asset to our society