Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Disney decided it wanted to provide streaming services directly to customers, rather than renting its library of films and television shows to other streaming services

image text in transcribed
image text in transcribed
Disney decided it wanted to provide streaming services directly to customers, rather than renting its library of films and television shows to other streaming services like Netflix. But how successful would a streaming service be? In other words, what did the demand for a "Disney+" streaming service look like? Disney knew that the number of subscribers would depend not just on the attractiveness of the Disney archives, but also on the subscription price. After doing some market research, Disney decided to launch Disney+ at a price of $6.99 a month (or $69.99 per year). When Disney+ was launched on November 12, 2019, 10 million people signed up on the first day a resounding success! (Source: News reports, October-December 2019). Question: If Netflix loses 3.5 million subscribers for every $1 reduction in the Disney+ subscription price, how many more subscribers would Netflix have lost if Disney+ were initially priced at $4.99 a month? (Just write the number)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Econometrics By Example

Authors: Damodar Gujarati

2nd Edition

1137375019, 9781137375018

More Books

Students also viewed these Economics questions

Question

Describe how data could be transmitted using amplitude modulation.

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago

Question

What reward will you give yourself when you achieve this?

Answered: 1 week ago