Description: In terms of a library of content, it probably makes great sense for Disney to have opened its own streaming service this week. It has already been a big hit, with millions of subscribers already signing on for the fee of $7 per month. Disney has already hit 10 million subscribers, a target some analysts thought it would take a year to reach. That’s pretty impressive in just a few days.
Date: November 13, 2019
1) Have you subscribed to the Disney streaming service? If so, what attracted you to it?
2) Streaming services are becoming concerned about multiple users on the the same streaming account via password sharing. If you were responsible for getting control over the problem at one of the streaming companies, what would you recommend?
3) On page 372, Illustration 9.1, of Wiley’s Managerial Accounting: Tools for Business Decision-Making, we see four key pricing factors that influence pricing decisions. Which of these four factors would have been most influential when Disney made the strategic decision to charge a $7 fee?