Tag Archives: entertainment

Pricing in the Entertainment Streaming Industry

The entertainment streaming industry is on fire right now. Apple, Hulu, Netflix, Disney, HBO, and more brands are ramping up to fight it out for the monthly consumer subscription!

Here is how the current prices compare between services:

Service Monthly cost Shows
Netflix $12.99 Stranger Things
Hulu $11.99 (ad free), or

$5.99 (with ads)

Handmaid’s Tale
Amazon Prime Video $8.99 Marvelous Mrs. Maisel
Apple TV+ $4.99 The Morning Show
Disney+ $6.99 The Simpsons
HBO Max $14.99 Friends

 

Notice anything interesting in the prices? How each price ends? Which vendor is using penetration pricing? Or below-competition pricing? Name a price model and it’s probably on the list above. Blockbusters, as well as all-new created movies and shows are all offered from multiple services and it can be hard to determine which has which. The marketing focus should be on differentiation – the services are starting to sound alike, and be priced alike.

There has been a dramatic shift in recent years about how consumers get their information and entertainment, and how many more consumers use streaming services each year. The average consumer in 2019 has 2.6 stacked services. This is up from 1.6 stacked services in 2016, but far short of the projected 4.9 staked streaming services by 2023.

Think about it… how many services are currently in your household?

Group Activities and Discussion Questions:

  1. Poll students: How many subscription services does each household have today? Add them and average it for the class.
  2. Show a video about the topic: https://www.wsj.com/video/video-streaming-services-battle-for-subscribers/AED37E41-E1EC-447A-A47F-C55D1834B7E0.html
  3. Pricing is usually a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  4. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  5. For these streaming services, divide students into groups and have each group work on setting the price level.
  6. Assign each team a different model to use (demand-oriented, cost- oriented, profit-oriented, and competitor-oriented) and have the team explain how the model was used when setting their price.
  7. Compare the various pricing models and discuss advantages/disadvantages of each.

Source: FitzGerald, D., & Flint, J. (29 October 2019). AT&T lays out price, show line-up for HBO. Wall Street Journal; other news sources

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Finally – Female Army Soldier Toys!

It may have been a while since we played “Army,” but most of us can recall the little green plastic army men that we used to declare war on our siblings and friends! Those little toy men offered hours of inexpensive play and imagination. But, note the key word here: “men.” Where are the female soldier figures? After all, women have been in military service and combat for decades. Why haven’t the figures changed to reflect the new military? Good question.

After a fruitless search looking for female soldier figures, a six-year old girl in Little Rock, Ark., decided to write letters to toy companies asking for female soldiers. One company, BMC Toys based in Scranton, Penn., replied to her about the request. The company had been considering offering female figures, even going so far as sketching the female soldier figures in classic Army poses. The letter finally made the decision for the company and the new toys will be released in 2020. The feedback has already been overwhelmingly positive and preorders are being requested. BMC plans to launch a crowdfunding campaign to help promote the toy and gain funding.

Let’s play Army!

Group Activities and Discussion Questions:

  1. Discuss the role of gender in toys with students. Have students list toys that are oriented to boys, and toys oriented to girls.
  2. What makes them different? Should there be different toys by gender?
  3. Show news video about the girl Army toys: https://youtu.be/i_eYnv_pCZs
  4. BMC blog post about the toys: https://bmctoys.com/blogs/news/bmc-toys-plastic-army-women-project
  5. Have students search for female soldier toys on Amazon. What did they find? (What they will find are ‘pink colored’ soldiers, but still in male forms.)
  6. Next, divide students into teams. Have each team choose one of the male or female toys and develop a new product that would appeal to both genders.
  7. Have each team also develop a marketing program for the new toy.

Sources: Chicago Tribune, CNN, CBS Evening News, Fortune, and other news sources.

 

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Gender-neutral Dolls for Creating Your Own World

Barbie dolls have been around for 60 years and have mirrored many of the changes in culture and society. Barbie has been a politician, actress, musician, doctor, nurse, astronaut, and more. But there is a point where no matter how many changes Barbie goes through, she will always be seen as the iconic Barbie doll, and that doll does not reflect how many children view themselves and their world.

Today’s society increasingly is rejecting labels and embracing diversity. Mattel’s new line of dolls – the Creatable World doll – is still high-fashion, but the dolls reject labels and invite everyone to play. The dolls are designed as gender-neutral and can therefore be dressed and accessorized to adopt to many types of children – male, female, transgender, gender-fluid, and non-binary. In other words, the Creatable World dolls can be turned into virtually every different child’s gender and appearance.

The dolls look like a 7-year old child and have makeup-free, polished faces. There are various wigs, accessories, and clothing wardrobes. Dolls come with versatile pieces of clothing that give kids the freedom to make the characters whoever they want them to be. The dolls give kids a blank canvas with which they can create their own characters. Mattel uses the hashtag #AllWelcome to encourage a world where everyone is invited to play.

What are you waiting for? Let’s play!

Group Activities and Discussion Questions:

  1. Divide students into groups. Have each group 10 of their all-time favorite toys.
  2. Build the list of toys on the board and challenge students to examine the list.
  3. Are these toys gender-neutral, or are they directed at boys or girls only?
  4. Discuss with students how toys can reflect society and cultures.
  5. Show the video: https://youtu.be/-hGu4hPSNXI
  6. View the dolls at Mattel: https://www.mattel.com/en-us/creatable-world
  7. What other toys could use this approach?
  8. How should Mattel market the new dolls?

Sources: Lee, C. S. (26 September 2019). Mattel releases line of gender-neutral Creatable World Dolls. Advertising Age.

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