Remember the not-so-long ago days when Netflix was the king of streaming services? Back then it was an easy segment for the company to command: “For the pleasure of viewing our content, your only option is to go all-in for our unlimited usage plan.” But today, with so many streaming services available, offering only all-you-can-watch is a mistake. Doing so limits a service’s customer base and makes it vulnerable to better-tailored pricing from rivals.
Why Is Every Streaming Service Using the Same Pricing Model?
As consumers get more options, creative pricing could be a differentiator.
November 12, 2019
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Summary.
The streaming video landscape is suddenly getting cluttered, with Apple+, Disney, HBO, and NBC all launching new services. All of them are using the pricing model that has become the norm in this space: all-you-can-watch for a flat monthly fee. This is short-sighted. In an increasingly cluttered marketplace, streaming services would be wise to consider alternative pricing models, such as a metered model, a Good-Better-Best option, or a hybrid plan. Doing so would better meet customer needs as viewers become choosier about just how many services they need to subscribe to.