It’s odd that with the exception of Disney+, which is offering discounts for a long-term commitment, streaming services typically only offer month-to-month plans. In addition to a fixed number of minutes, minutes were allocated to different categories such as off-peak, peak, and international.ĭiscounts to Incentivize Commitment. Cell phone pricing plans of the past are an example of a hybrid of metering and G-B-B. Usage restrictions include “ability to binge watch” (yes/no), viewing time (all week vs. available on other services), and release date (new vs. films), exclusivity (original content vs. Content can be segmented by content type (series shows vs.
Another way to provide discount options is to offer a line of packages. Friends and distant friends will be more vigilant on safeguarding their streaming passwords if they are now being charged for their “generosity.” And if the unlimited plan is ditched, a key problem will be solved. A handful of volume-based plans can be offered: low, medium, and high. The easiest solution is to meter usage by number of shows or viewing time. So what should streaming services do? Rethink the virtues of - but probably keep - an unlimited plan and consider adding the following options: Bloated all-or-nothing packages will be even less appealing. metered plans or a la carte), those that don’t follow suit will be put at a significant competitive disadvantage. Just as important, if rival streaming services start offering cheaper options (e.g. So while I’d enjoy watching Succession, the highly-rated HBO series, there’s not enough additional “must see” content for me to justify paying $14.99 per month for unlimited viewing. Viewers want to watch their favorite shows – and minimize paying for programs that they’re not interested in. Streaming services are violating rule number one in pricing/packaging: meet the needs of customers. As a result, consumers will have to cobble together several fragmented services to watch their favorite shows, and that can get expensive. The downside is instead of aggregating and bundling services (as cable has done), streaming companies have chosen to sell independently and offer only all-you-can-watch packages. Streaming services have upped the bar, and more competition will continue to spur creativity. Content quality skyrocketed when cable started to compete against three television channels (ABC, CBS, NBC). The upside of intensified competition is better programming. For a creative industry, where’s the pricing ingenuity? Apple TV+ launched recently, and Disney+, HBO Max (which will include programs from WarnerMedia), and NBCUniversal’s Peacock are set to go live in the near future.Įach of these services is charging between $4.99 to $14.99 per month for unlimited viewing.
#Netflix pricing model movie#
They include the stalwarts (Amazon Prime, Netflix, Hulu, HBO Now, Starz, Showtime), movie specialists (The Criterion Channel), television channels (CBS, ESPN+), a comic book/superhero channel (DC Universe), and even two British television services (BritBox, Acorn TV). We do already have a multitude of streaming options. Doing so limits a service’s customer base and makes it vulnerable to better-tailored pricing from rivals.
Remember the not-so-long ago days when Netflix was the king of streaming services? Back then it was an easy segment for the company to command: “For the pleasure of viewing our content, your only option is to go all-in for our unlimited usage plan.” But today, with so many streaming services available, offering only all-you-can-watch is a mistake.
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