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
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.Ã‚Â
- 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.