I want to ask your opinion regarding the Netflix pricing strategies.
So the case is:
Netflix is contemplating to acquire new business model, which is a paid per film (so basically the customer paid for the film that they rent). How did you determine the prices?
The information that I got is
a) The total subscriber right now is 1M, whereby 400k are movie enthusiast (watch 12 films per month), 400k are on a family plan (watch 8 films/month) and 200k are casual users (1 film per month)
b) The price for regular are 120k per month, and the price for the family plan is 168k per month for 4 people
My approach are
a) I benchmarked the prices from the movie enthusiast (So I divided 120k to 12films, which is they willing to pay around 10k per film)
b) I put external factor to be considerate, I assume that if we buy some Blue Ray DVD is around 50k per film, which we got the film and the ownership of the film (physical CD), and it important for movie enthusiast, so the range price per film should be around 10k-50k per film.
Does it make any sense? Looking back for all the feedback!
(The initial case is profitability case, whereby the outcomes are shifting to the pricing, and I think I need some feedback regarding the pricing)