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Netflix: Pricing Decision 2011 Case Solution & Answer

Since 2007, Netflix began offering existing email subscribers the ability to assign a limited number of streaming movies online at no additional cost. This “free flow” lasted until mid-2011, when Netflix announced a split from his business with (different names and sites) monthly charge separately for streaming and electronic subscriptions disk. Reaction churn and the resulting risk caused the stock price of the company fell 60 percent. As the movie studios (content owners) saw its decline in DVD sales, they began to greatly increase their prices to online content. In addition, Netflix had been dominant in the direction of the disc rental model began to face stiff competition from other providers of streaming video. case study allows students the opportunity to learn about pricing and develop a pricing strategy of Netflix.
by
Max Oltersdorf,
David Robinson
Source: UCB – Haas School of Business
13 pages.
Date Posted: January 20, 2013. Prod #: B5766-PDF-ENG
Netflix: Price decision 2011 Case Solution

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