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  • July 2020 (Revised November 2020)
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Pricing at Netflix

By: Elie Ofek, Marco Bertini, Oded Koenigsberg and Amy Klopfenstein
  • Format:Print
  • | Language:English
  • | Pages:33
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Abstract

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.

Keywords

Pricing; Marketing; Marketing Strategy; Entertainment; Film Entertainment; Television Entertainment; Finance; Price; Strategy; Competition; Competitive Strategy; Business Strategy; Adaptation; Information Technology; Internet and the Web; Digital Platforms; Customers; Customer Satisfaction; Customer Value and Value Chain; Entertainment and Recreation Industry; North and Central America; United States

Citation

Ofek, Elie, Marco Bertini, Oded Koenigsberg, and Amy Klopfenstein. "Pricing at Netflix." Harvard Business School Case 521-004, July 2020. (Revised November 2020.)
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About The Author

Elie Ofek

Marketing
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Related Work

    • July 2020 (Revised November 2020)
    • Faculty Research

    Pricing at Netflix

    By: Elie Ofek, Marco Bertini, Oded Koenigsberg and Amy Klopfenstein
Related Work
  • Pricing at Netflix By: Elie Ofek, Marco Bertini, Oded Koenigsberg and Amy Klopfenstein
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