3 ms·
Completely disagree. This is about power, they are raising the price simply because they can and people will stay on. They've got a long way to go to increase i
by neximo64 5y ago
Completely disagree. This is about power, they are raising the price simply because they can and people will stay on. They've got a long way to go to increase it before the elasticity changes.
The business model was never about being really underpriced, that was just a way to acquire customers.
- bogomipz 5y agoHow do you imagine they are "raising the price simply because they can" when their growth has slowed[1] and they have decided to no longer use debt in order to finance content?[2] I think those two facts taken together are a much more plausible explanation of why they are raising prices i.e because they have to. Further given the competitive head-winds they're now facing streaming space they are definitely not in position of price leadership. [1] https://www.marketwatch.com/story/as-netflix-growth-slows-streaming-pioneer-plans-to-open-up-its-viewer-metrics-11634690003 https://www.marketwatch.com/story/as-netflix-growth-slows-st... [2] https://www.nytimes.com/2021/01/19/business/netflix-earnings-debt.html https://www.nytimes.com/2021/01/19/business/netflix-earnings...
- neximo64 5y agoAfaik their revenue hasn't dropped its only slowed - meaning the strategy works since it boosts their margins.