Catalyst Quote & Comment: Lee Iacocca On People Who Want Economy
Illustrating the point This past week we had the coincidental opportunity to write at some length about Netflix’s new plan for “people who want economy”, in an article that illustrates the very point of the Catalyst Quote: Netflix’s Clever Price Framing Will Ring The Register On Ad-Supported Plan In the article, we show that “economy” […]
Netflix: Ad-Supported Plan As Masterful Pricing Strategy
Summary Netflix will have significantly more attractive economics on the ad-supported plan than on its basic and premium plans. The plan pricing is cleverly framed as both “significant savings” vs. existing plans and as cheaper than competitors. In effect, Netflix is paying subscribers significantly less than $1/hour to watch ads. At a Hulu-comparable $30/CPM, it […]
Catalyst Quote & Comment: Oscar Wilde On People Who Know The Price Of Everything
Illustrating the point Consider the following title and the story in the MIT Technology Review article: Meta is desperately trying to make the metaverse happen Meta’s pricey Meta Quest Pro VR goggles leave us with a clear price tag that seeks to confidently push aside many questions about value. Just as Oscar Wilde’s skepticism was […]
Footwear Pricing Strategy: Nike, Stock Prices & Pricing Power
Nike’s stock price fell (a lot). Does this tell us anything about its “pricing power”? Last week, the world’s largest footwear and apparel company lost about 15% of its market cap, taking a lot of the sector down. It had already been by and large a very rough year for footwear company valuations. Some semi-professional analysts urged […]
Catalyst Quote & Comment: Jeff Bezos On Lowering Prices …
Illustrating the point Consider the following title and the story in the article: Passengers Left ‘Gutted’ After Etihad Airways Cancels $300 Australia – Europe ‘Mistake Fares’ Apparently prices are so easy to lower, a dumb computer glitch can do it … with rather untenable consequences. The article, admittedly an extreme case, illustrates nevertheless some memorable […]
When SaaS Freemium Is Not Free: The Case Study
Part #2 of 2. Part #1 When SaaS Freemium Is Not Free: The Gotcha “Strategy” was published last week and sets the stage for how to evaluate (and generalize findings) from a case study like the one we tackle here. (Note: All references to a specific company name have been removed, and images have been […]
