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Does Netflix’s recent rise in subscription prices signal a disruption risk?

January 19, 2022 by Lori O'Grady Filed Under: Newsletter

Netflix recently raised their subscription prices.

At the max in terms of market growth – yet with increasing demands to produce great content – Netflix is looking to increase revenues by increasing their prices.

It seems that, at this point Netflix has decided that there is room for them to test the limits on their prices.

Isn’t that the opposite of market disruption? Where a cheaper player tends to come up with a lower quality product and upends the market leader.

This is a response to competitive risk, not market risk. Has the disruptor of blockbuster now signaled it is ripe for disruption?

The streaming market appears to be an industry at risk for disruption.. There are a lot of players. There is a demanding consumer. I think a rare person can predict the shape it will take. Though most of us can see that something new is coming.

In the meantime, we can learn a lot in how the big guys respond.

For example, we too could probably test the limits on their prices. Though I would advise to mitigate the risk by considering your customer’s valuation of your product, not just our costs.

In my latest blog post, I explore some of the lessons we can learn from watching companies like Netflix face disruption. Let them take the risk. Then decide if what lessons are there for our business too. What strategies and tactics could we adopt, tailored to our risks.

Have I piqued your interest?

>>> Head over here to read the post.

I predict that whatever the disruption is that happens to the entertainment industry, it will be shaped by whoever puts customer value at the forefront.

Hang onto your hat! It’s going to be a great ride!

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