The Walt Disney Company launched its new platform, Disney+, in Fall 2019. The company immediately disrupted the streamin
Posted: Sun Jul 03, 2022 3:18 pm
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. As the Walt Disney Company entered their new market ofstreaming services, the company had to decide how they were goingto appropriately price their service. One way to do this was tocompare other streaming service prices in order to understand theaverage price range for the industry. For which stage of the priceestablishment process would this service be most appropriate?
Evaluating competitors’ prices
Developing pricing objectives
Selecting a basis for pricing
Assessing the target market’s evaluation of price
2. 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
select answer
price, using the pricing strategy of
3.
In Fall 2019, Disney+ announced an option to get three streamingservices for one price. The offer was to get Disney+, Hulu, andESPN+ for $12.99 per month. This is an example of ________.
customary pricing
reference price
multiple-unit pricing
bundle pricing
select answer
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. As the Walt Disney Company entered their new market ofstreaming services, the company had to decide how they were goingto appropriately price their service. One way to do this was tocompare other streaming service prices in order to understand theaverage price range for the industry. For which stage of the priceestablishment process would this service be most appropriate?
Evaluating competitors’ prices
Developing pricing objectives
Selecting a basis for pricing
Assessing the target market’s evaluation of price
2. 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
select answer
price, using the pricing strategy of
3.
In Fall 2019, Disney+ announced an option to get three streamingservices for one price. The offer was to get Disney+, Hulu, andESPN+ for $12.99 per month. This is an example of ________.
customary pricing
reference price
multiple-unit pricing
bundle pricing
select answer