Just thinking... I wonder if Netflix made a strategic blunder by raising prices *before* they could secure a deal with Starz or another studio or network. Obviously, part of the reason for the price hikes was to pay for these content deals so Netflix doesn't become the dumping ground of old but unnotable films. Now, the premiums want their content to be perceived as adding value to the brand -- not unlike the premium pricing strategy of Apple where sales, discounts, coupons and specials *always* exclude things like the iPhone. Now, if Starz wanted people to affirmatively pay for the network, and Netflix wanted to keep its service from splintering into cableco package deals, maybe they could have sold to Starz that they could market the price increase as the best way to get Starz hit movies online. Starz gets their premium pricing proposition, and Netflix gets a fallguy to blame.
That said, the downside to this would be if the next Starz, like HBO or Showtime, see it as precedent and ask for similar customer price hikes as condition for streaming their shows online. -- TV or Not TV .... The Smartest (TV) People! You received this message because you are subscribed to the Google Groups "TV or Not TV" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/tvornottv?hl=en
