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Pricing at Netflix

Subject

Economics, Economics, Marketing

Authors / Editors

Ofek E;Bertini M;Koenigsberg O;Klopfenstein A

Biographies

Publication Year

2020

Abstract

Harvard Business School Case Study, July 2020 Since its launch in 1998 as “the Amazon.com of DVDs,” Netflix had evolved from a DVD rental company to a video streaming platform and producer of original films and television shows. As the company matured, it regularly increased prices and adjusted its product offerings while continuing to add new subscribers. However, between late 2019 and mid-2020, competition within the streaming industry intensified with the launch of new entrants such as Disney+, Apple TV+, and HBO Max, jeopardizing Netflix’s position as the industry leader. In spite of the heightened competition in the streaming industry, some analysts and customer willingness-to-pay surveys suggested that Netflix had the opportunity to implement another rate hike in the near future. By May 2020, Netflix must decide whether to increase prices again, or whether it should consider a different pricing model altogether

Topic List

Pricing, Marketing, Marketing Strategy, Entertainment, Film Entertainment, Television Entertainment, Finance, Price, Strategy, Competition, Competitive Strategy, Business Strategy, Adaptation, Technology, Internet, Online Technology, Technology Platform

Industry

Entertainment and Recreation Industry

Location

North and Central America; United States

Available on ECCH

No


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