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Case Studies
A Masterclass In Pricing Psychology

How to get the most from Case Studies

BFM+Exclusive

A Masterclass In Pricing Psychology

12 mins
about Netflix
Netflix logo large
  • What you'll learn:
  • Case study

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.

So Netflix made a simple design tweak: to 'hide' one of their most popular packages.

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.

What you'll learn:

  • 🖼

    How to frame and anchor product tiers
  • 🦜

    How to use a decoy option
  • 🏋️

    Why the perception of hard work is important
  • 🔥

    How to do cohort experimentation

Case study

Peter Ramsey, Built for Mars Founder

Written by Peter Ramsey

Consultant to 100+ companies

Part of:
Product Psychology · Purchases & Subscriptions
Published: 28/02/2023
Last edited: 01/04/2025

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