Though many companies have successfully taken inflationary price increases this year, Netflix was not one of them. Earlier this year, Netflix’ seemingly benign campaign to increase fees by a few dollars cost them over 600,000 subscribers and $50+ billion in market cap!
What happened? The team discusses what they believe to be the strategic mistakes that Netflix made, and how things could have been different.
In this episode, you will learn:
- How Netflix became a victim of a market that they themselves largely created
- Similar mistakes made by companies like NBC and Peloton
- Some helpful tools for analyzing the customer “value for money” equation
Here are some quotes from the team’s discussion:
- “Netflix penetrated so many lower income households, where the price hike truly hurt.”
- “Even in inflationary times, it’s helpful to think through the timing of price increases.”
- “Pioneers don’t always win!”
We hope you enjoy the discussion and gain some helpful insights!