Strategic Movements: July 2020
Online TV Asymmetric Price Increases
Google’s YouTubeTV subscriptions are increasing to $65/month from $50/month and FuboTV is raising prices $5/month to near $60. Others like Netflix and Disney+ are holding prices low while attracting new subscribers. Which path is correct?
Photo by Jehyun Sung on Unsplash
Both. FuboTV and others are delivering live sports where price elasticity of demand is much lower. Netflix and others are not, and their elasticity is much higher.