A Masterclass In Pricing Psychology

Take up for Netflix's ad-supported subscription was initially slow.

The Wall Street Journal reported that only 9% of new signups opted for it, and of those who were happy to watch ads, 43% had downgraded from more expensive options.

The result: sign-ups to their ad-tier doubled.

This case study demonstrates a masterclass of pricing psychology, and how simple changes (reliant on data and experimentation) can significantly alter the course of your product.

Although before we start, I want to be clear about something: what you're about to see could easily be perceived as a dark pattern.