As media giants such as Walt Disney Co and AT&T Inc devise subscription plans for new video-streaming products aimed at challenging Netflix Inc’s supremacy, the retail industry can offer some advice: Don’t underestimate the power of “free”.
Media companies are grappling with how much content to provide on their new video apps and how to price these new services. Disney is creating a cut-rate version of Netflix exclusively for fans of its Pixar, Marvel and Star Wars franchises. AT&T says its app will have a range of subscription prices to watch on-demand content from its HBO, Turner and Warner Bros libraries. Depending on whether you’ll tolerate ads, CBS Corp charges a monthly rate of US$5.99 (RM24) or US$9.99 (RM40) for CBS All Access. There are an array of other paid services as well.
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