The Walt Disney Company launched its new platform, Disney+, in Fall 2019. The company immediately disrupted the streamin

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The Walt Disney Company launched its new platform, Disney+, inFall 2019. The company immediately disrupted the streaming servicesindustry, sending competitors like Netflix and HBO Max intoquestioning where the future of streaming was headed.
A Disney+ subscription is priced very low compared to otherstreaming service prices. The company announced pricing at just$6.99, whereas Netflix’s most popular plan is priced at $12.99.This was an easy “yes” for customers trying to decide whether tobuy the subscription. The service offers a variety of contentincluding Disney+ originals, classic animated films, iconic mediafranchises, and more. Many customers view this offer as a greatprice for what all they are receiving. While the company'scompetitive prices may not lead to customers cancelling theircurrent subscriptions and moving to just Disney+, it can hinder theflexibility of prices for other streaming services.
1. For the launch of Disney+, the company set a price todirectly compete with other streaming services like Netflix and HBOMax. The strategy used was to set the low
price, using the pricing strategy of ________
cost-based skimming
cost-plus pricing
competition-based pricing