Netflix Prices around the World

Brooke, Han, Shrey, Andrea
02/22/2022

Introduction

  • Research Question: We are interested in comparing countries' GDP per capita to the netflix price. Therefore, our question is: Does a country's GDP have an effect on the Netflix standard price?

  • The first dataset we are using has information regarding the Netflix subscription fee in 65 countries all over the world in December 2021.It has 8 columns containing country identifiers and different Netflix plans prices. The table has no missing data.

  • The second dataset we are using has information regarding the GDP per capita of 230 countries around the world. It has several columns containing country names and GDP across the years. Some rows have missing GDP.

Data cleaning

  • We removed all the columns except country names and 2021 GDP from the GDP dataset.
  • Then we joined our Netflix dataset with the GDP dataset through their common “Country” column.
  • By inner joining our datasets we also got rid of any missing values in the GDP dataset.
  • We changed column names to more appropriate names in the joined data set
  • We removed the country_code column from the joined data set as it was irrelevant

Preview

    Country Library.Size TV.Shows.Counts Movies.Counts Monthly.Cost.Basic
1 Argentina         4760            3154          1606               3.74
2 Australia         6114            4050          2064               7.84
3   Austria         5640            3779          1861               9.03
4   Belgium         4990            3374          1616              10.16
5   Bolivia         4991            3155          1836               7.99
6    Brazil         4972            3162          1810               4.61
  Monthly.Cost.Standard Monthly.Cost.Premium  GDP.2021
1                  6.30                 9.26  9929.154
2                 12.12                16.39 62618.587
3                 14.67                20.32 53793.367
4                 15.24                20.32 50412.713
5                 10.99                13.99  3266.690
6                  7.11                 9.96  7741.153

Comparing GDP and Netflix Price

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Descriptive Statistics

Standard Cost Per Month:

 min      Q1 median      Q3   max     mean       sd  n missing
   3 10.6575  11.39 13.6525 20.46 11.85161 2.816357 56       0

2021 GDP:

      min       Q1   median       Q3    max     mean       sd  n missing
 1627.353 7521.156 19033.25 50824.44 102394 30217.71 26493.23 56       0

Statistical Analysis

r <- cor(netflix.gdp$Monthly.Cost.Standard, netflix.gdp$GDP.2021, method = "pearson")
r

[1] 0.7187114

  • There is a strong positive linear correlation between the standard subscription fee and the GDP of each country. That is, the higher the GDP is, the more expensive the standard subcription will be.

  • Some outliers: Turkey (3.00), Switzerland (20.46)

Conclusion

  • Since there are some outliers, we could consider excluding the outliers for more accurate interpretation of the data.

  • Overall, it seems that countries w(ith high GDP per capita ($) have higher Netflix prices than countries with lower GDP per capita.

References