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A flat fee, also referred to as a flat rate or a linear rate, refers to a pricing structure that charges a single fixed fee for a service, regardless of usage. Rarely, it may refer to a rate that does not vary with usage or time of use. The flat rate strategy is currently being used by the internet and televisions providers (UPC), and in the entertainment industry (Netflix).

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Hassle-Free Is For Me

Consumers are often enticed by flat rate pricing because it offers convenience with very little hassle.



Netflix is an American provider of on-demand Internet streaming media. They offer viewers hundreds of titles to choose from and charge a monthly fee of (€8,99) to access an unlimited number of movie and series rentals.

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For The SME

There are many businesses that use this strategy. For example, car washes, after-school centers, and gyms utilize this pricing strategy by offering a flat rate for unlimited use in a given amount of time (i.e. per month).