For SVODs, the price a platform charges subscribers should be directly related to the demand for content it has to offer them. And we do see a close correlation between these two things. If we only looked at the relationship between the number of shows and movies on each platform and the monthly subscription price, the relationship is nowhere near as close. The takeaway is that simply having a greater quantity of content isn’t enough to justify charging a higher price — it has to be content that audiences actually want.
Striking the right balance between raising prices to increase revenue without driving away subscribers is a tricky line to walk.