The Netflix Pricing Strategy for When You're Not Sure Yet

Start low. Prove the model. Then let the price catch up.

In 2011, Netflix launched streaming at $7.99 a month.

The pitch was almost apologetic. “Who’s going to pay for this?” was a real question. DVDs still made sense. Blockbuster was still standing. The whole thing felt like an experiment Netflix wasn’t sure would work.

So they priced it like they weren’t sure.

Today, their premium tier is $24.99. But they didn…