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  • August 2022 (Revised March 2023)
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Pricing at Netflix: The Sequel

By: Elie Ofek and Amy Klopfenstein
  • Format:Print
  • | Language:English
  • | Pages:7
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Abstract

This case continues the themes discussed in "Pricing at Netflix" (Case 521-004). Following the conclusion of the original case, Netflix developed new, high-profile original content, added millions of subscribers, and introduced another price increase in January 2022. Yet Netflix struggled to grow as streaming rivals such as Disney+, Hulu, and HBO Max captured market share and the global pandemic was winding down. The case describes actions that Netflix considered to remain competitive, such as developing video games, charging users for sharing passwords, and, particularly, rolling out an ad-supported tier at a cheaper price than the other plans it currently offered. The case describes other streaming platforms’ ad-supported tiers and asks readers to consider whether and how Netflix should design its own ad-supported plan; as well as whether raising subscription prices yet again on its existing plans was advisable.

Keywords

Marketing; Advertising; Marketing Strategy; Entertainment; Film Entertainment; Television Entertainment; Finance; Strategy; Competition; Competitive Strategy; Business Strategy; Adaptation; Internet and the Web; Customers; Customer Satisfaction; Entertainment and Recreation Industry; Advertising Industry; North and Central America; United States

Citation

Ofek, Elie, and Amy Klopfenstein. "Pricing at Netflix: The Sequel." Harvard Business School Case 523-015, August 2022. (Revised March 2023.)
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About The Author

Elie Ofek

Marketing
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Related Work

    • March 2023
    • Faculty Research

    How Should Netflix Add an Ad-Supported Tier?

    By: Elie Ofek and Olivier Toubia
    • August 2022 (Revised March 2023)
    • Faculty Research

    Pricing at Netflix: The Sequel

    By: Elie Ofek and Amy Klopfenstein
Related Work
  • How Should Netflix Add an Ad-Supported Tier? By: Elie Ofek and Olivier Toubia
  • Pricing at Netflix: The Sequel By: Elie Ofek and Amy Klopfenstein
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