Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Netflix Broke the Cable Bundle with a Hundred Dollar Bet
In this episode of Pricing Power Podcast, Lucas and Luna unpack the single pricing decision that reshaped the streaming wars: Netflix's 2011 decision to split DVD-by-mail from streaming. At the time, customers saw a 60% price hike overnight. But buried in that move was a bet that consumers would pay $100 a year for a yet-unproven product. Lucas walks through the internal logic — the 10x value principle, the willingness-to-pay curve, and why Netflix was willing to lose 800,000 subscribers in a quarter. Luna pushes back on whether the company could have phased the change, and they debate…
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