Netflix`s Pricing Strategies to Arrest Falling Subscriber Numbers

Netflix`s Pricing Strategies to Arrest Falling Subscriber Numbers
Case Code: MKTG445
Case Length: 6 Pages
Period: -
Pub Date: 2022
Teaching Note: Available
 Price: Rs.300
Organization : Netflix, Inc.
Industry :Leisure & Entertainment
Countries : United States
Themes: Pricing, Marketing Strategy, Competitive Strategy,Business Models

Netflix`s Pricing Strategies to Arrest Falling Subscriber Numbers
Abstract Case Intro 1

Abstract

The case “Netflix’s Pricing Strategies to Arrest Falling Subscriber Numbers” talks about the various new pricing strategies that leading global streaming giant Netflix, Inc. was contemplating introducing to arrest the rising number of service cancellations among its subscribers. The case explores how Netflix had always been abreast of the ever-changing customer preferences in the home entertainment space and had changed its business model accordingly to serve customers, thereby emerging a winner each time. In the late 2010s, Netflix was faced with a new set of challenges. It was experiencing a fall in subscriber numbers and, consequently revenues, due to a gamut of reasons. Besides, its investment costs were also high due to the focus on content creation that it had undertaken to retain customers. Netflix was considering introducing a host of new pricing strategies – to earn revenues, retain customers, and compete effectively – thereby bringing in a change in its business model again. So, will Netflix again successfully change its business model to emerge a winner?

Issues

The case is structured to achieve the following teaching objectives:

  • Understand the key components of a business model.
  • Analyze the circumstances that lead to the reinvention of business models.
  • Examine the various pricing strategies and their business effectiveness.
  • Identify the impact of new pricing strategies on business prospects.

Contents

Introduction
Netflix and its Changing Business Models
The Change in Scenario
A Change in Direction
Exhibits

Keywords

Pricing Strategy; Price Wars; Market Penetration Pricing; Business Model Reinvention; Ad Pricing Model; Content Creation; Business Environment; Business Model Framework; Competition Analysis; Falling Demand; Market Saturation; Subscription Pricing Model; Promotional Strategies; Business Model Innovation; Online Streaming Market; and Competitive Pricing;

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