Netflix operates in 190+ countries and actively localizes its subscription prices to match what consumers in each market will pay for digital content. The Netflix Index uses these real-world subscription prices as a proxy for local digital spending power — arguably the most relevant affordability signal for app developers. The Netflix Index compares these local subscription prices to the US price to create a purchasing power ratio for digital goods.
The Netflix Index collects the standard Netflix plan price in each country, converts it to USD, and compares it to the US price. This creates a ratio that represents how much local consumers are willing to pay for a digital subscription relative to the US.
If the US Netflix plan is $15.49/month and the equivalent plan in India is $3.05/month, the ratio is 0.20. Applied to a $9.99 app: $9.99 × 0.20 ≈ ₹299 (after conversion and tier snapping).
What makes this especially relevant for apps: Netflix has a sophisticated pricing team that A/B tests and optimizes prices per market. When you use the Netflix Index, you're implicitly leveraging Netflix's market research — for free.
The ratio compares each country's Netflix standard plan price (in USD) to the US price.
| Region | Netflix (USD) | Ratio | App Price |
|---|---|---|---|
| United States | $15.49 | 1.00 | $9.99 |
| United Kingdom | $13.18 | 0.85 | £6.99 |
| Brazil | $5.88 | 0.38 | R$29.90 |
| India | $3.05 | 0.20 | ₹299 |
| Turkey | $3.07 | 0.20 | ₺79.99 |
| Argentina | $4.02 | 0.26 | ARS 2,999 |
| South Korea | $9.49 | 0.61 | ₩8,900 |
FAQ
Netflix is one of the few global digital subscriptions with localized pricing in 190+ countries. Their pricing team actively optimizes for local willingness-to-pay, making their prices an implicit market research signal. If Netflix has determined that consumers in Turkey will pay $3 for a streaming plan, that tells you something about digital spending patterns in that market.
The Big Mac Index measures physical-goods affordability (food, labor, rent). The Netflix Index measures digital-goods willingness-to-pay — the amount consumers pay for a subscription they access on the same devices as your app. For digital products, Netflix prices may be a more relevant signal than hamburger prices.
Netflix adjusts regional pricing several times per year. When they raise prices in a market, it may indicate growing digital spending capacity. Any strategy using the Netflix Index should be reassessed when significant Netflix pricing changes are announced.
Yes. While Netflix itself is a subscription, the price ratio still reflects local purchasing power for digital products. Whether your app uses subscriptions, one-time purchases, or consumable IAPs, the Netflix ratio provides a useful affordability signal.