That Will Never Work. The story of how Netflix became the world’s most successful subscription company
Written by Morten Suhr Hansen
On the list of the world’s largest and most successful subscription companies, we find Netflix. The American streaming giant, that ended 2020 with 204 million subscribers worldwide, and currently has a market value of USD 243 billion. It is hard to imagine that the company is only almost 23 years old. It is even harder to imagine that Netflix did not start its life as a subscription company at all. However, the company’s switch to a subscription-based business model ended up saving the company’s life.
How Netflix ended up as subscription-based and what this meant for the company is a fascinating story. The story has many elements that any subscription company can learn from. This is exactly what the story is about in the book “That Will Never Work”, written by Marc Randolph, the Co-founder and Netflix’s first CEO.
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Consumers Across the World Are in Agreement: We Would Rather Subscribe Than Own!
Written by Morten Suhr Hansen
The “battle” against the traditional transactional- and ownership-based model has been underway for quite a while. An extensive and international study across countries in Europe, North America, Asia and Australia confirms that the subscription economy has seriously stuck. More than 13,000 respondents in 12 different countries have responded to the survey, which shows which products and services that consumers would rather subscribe to than own.
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Subscription Pricing Is One of The Most Important Decisions You’ll Have to Make
Written by Morten Suhr Hansen
We see it again and again. Every time we work with launching new subscription concepts with our customers, one of the key questions is: What should the subscription cost? This occurs both with startups launching a subscription for the first time and with established companies that are about to launch a new subscription product.
But it is quite a different story when it comes to established subscription companies that already have one or more subscription products in the market – at least if you believe the US-based company Zuora that provides software for subscription companies. Zuora has investigated how much time established subscription companies spend on pricing and pricing policy. And the answer is quite surprising: The vast majority of companies spend less than 10 hours a year evaluating and developing their pricing and pricing models.
Read more Subscription Pricing Is One of The Most Important Decisions You’ll Have to Make
