Say you’re planning to watch a movie tonight — you sit down, open the Amazon app, and start searching. Want to watch Marvel’s The Avengers from 2012? That’s free on Amazon Prime. But if you’re interested in the most recent installment in the Avengers’ series, Marvel Studios’ Avengers: Endgame from 2019, that will cost you $3.99 to rent. But not all new movies are rental only, and not all older movies are free. For example, you can watch Eddie Murphy in 2021’s Coming 2 America for free with your Prime membership, but if you want to check out the Murphy classic Beverly Hills Cop from 1984, that’ll cost you an additional $2.99. What gives?
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Summary.
What should be included in your basic subscription package and what should be extra? It’s a question that more and more companies are asking themselves as sectors from the auto industry to retailers adopt subscription models. Biphasic subscriptions, where some things are included and some are extras, are a common solution, but figuring out what offerings belong in which buckets is hard — and there’s a danger of driving customers away if you get it wrong. The author offers a model to help you make this decision
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.