OnDemand WTP Pricing Research

Disney strategy could limit Netflix pricing power, hurting long-term [video] | CNBC

Disney probably isn’t going to kill Netflix by stealing subscribers. But it may give it a chronic illness.

Disney announced Wednesday it will bundle Disney+, ad-supported Hulu and ESPN+ together for $12.99 per month. That’s the same price as Netflix charges for its standard plan.

While tempting to ask “will consumers rather have Disney’s bundle or Netflix?,” that probably isn’t the right question.

Video streaming isn’t going to be a zero-sum game. Consumers will pick and choose among offerings and may end up with four or five services on average. Netflix has more than 151 million global subscribers. The idea that Disney or any other service will “kill” Netflix by causing millions of people to switch services is unreasonable.

Read complete article here:

Disney strategy could limit Netflix pricing power, hurting long-term.

Post a Comment

WP-SpamFree by Pole Position Marketing