Why Netflix didn’t follow the regular Gold, Silver styled subscription plan names from the beginning

It is quite natural for any company to follow the industry trend of naming pricing plans – after all, use the nomenclature what others are using, as customers (we hope) understand these nomenclatures quite well.

But Netflix took a first-principle approach to this and decided not to use the standard naming of its subscription pricing plans.

Instead, they stuck to keeping things simple and as a function of what-you-get.

After all, if you name something you take up precious seconds during the sign up flow where the consumer evaluates the names themselves, then evaluates the offer.

And you have to spend ad money/attention educating consumer on what the name of the plans mean. If I tell you that you’re on the “3 DVDs-at-a-time” plan it is much clearer than telling you that you are on the “Gold” plan.

Barry Enderwick Former marketing Netflix 2001 – 2012 (Via)

Simple, right? The usual ‘Don’t-make-me-think’ strategy, which has gone super rare these days.

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