What subscription model would be best for a movie streaming service that charges based on the number of movies streamed each month?

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The most suitable subscription model for a movie streaming service that charges based on the number of movies streamed each month is metered billing. This model allows customers to pay for the service based on their actual usage—specifically, the number of movies they stream in a given billing period. This approach is particularly beneficial for a streaming service where different users may consume varying amounts of content.

With metered billing, subscribers have the flexibility to pay according to their individual viewing habits, which can enhance customer satisfaction. If a user watches more movies in a month, they pay more, reflecting their usage accurately. Conversely, if they watch fewer movies, their bill would be lower. This model aligns the costs with the value customers receive, creating a fair pricing structure that can cater to both heavy viewers and light users.

In contrast, flat-rate billing would charge a fixed fee regardless of usage, which might not accurately reflect the value perceived by varying consumer behaviors. Tiered billing could introduce complexity without addressing the fundamental usage-based nature of the service. Monthly subscription also implies a constant price, which does not accommodate fluctuations in movie consumption. Therefore, metered billing is the optimal choice for a service based on streaming volume.

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