Posted by & filed under Part 4: Marketing Management.

Two more U.S. pay-TV providers, Time Warner Cable Inc (TWC.N) and Verizon Communications Inc (VZ.N), plan to test systems to offer shows on the Web to paying customers in a bid to protect their subscription revenue.

Source: Reuters News

Date: 8/27/2009

Keys: Marketing, pricing, new product development, technologies


Questions for discussion:

  • Do you think that this business model of paying for television programming by subscription will work or will consumers avoid the service? Explain your thinking. 
  • Would you set the price for this service on a flat rate for all subscribers, on a scale related to the amount of viewing, or some other method? Explain your thinking.
  • What advantages and disadvantages are there for this sort of model? Explain your thinking.

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