How localized pricing works
The service keeps a price list per country or region. A viewer's country is detected from their location or their payment method, and they are shown and charged the price for that market in its own currency.
A plan that costs $10 in the United States might be listed at the equivalent of $3 to $4 in a lower-income market. The lower price is offset by a much larger share of the audience being able to pay it.
How to set a local price
- Start from a base price in your main market
- Adjust by purchasing power, so the plan costs a similar share of local income
- Check what local and global competitors charge in that market
- Round to a price point that looks natural in the local currency
- Offer the payment methods people there actually use
Risks to manage
Viewers in high-price markets may try to buy at a low-price market's rate using a VPN. Tie the price to the country of the payment method as well as the IP address, and geo-restrict the plan where licenses allow.
Exchange rates move. Review local prices on a schedule rather than letting them drift, and decide in advance how existing subscribers are treated when a price changes.
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