“These interventions are done under pressure from investors,” says El Benni. “They are stepping up the pressure to make a profit because they finally want to get their money’s worth, even at the expense of the number of subscribers. Making a profit in this one happens step by step, through what we call the “lock-in strategy”.
“The first step is to attract as many extra subscribers as possible. As consumers, we went along en masse by subscribing to various platforms at a fairly low entry price. Then, as a platform, you ensure that subscribers cannot just leave. Netflix, for example, made sharing subscriptions more difficult. Then you gradually increase the price.”
A golden formula, El Benni knows. “They have the content and the meaning, because we will watch less TV or listen to the radio. More content plus more meaning means a higher price.”
2023-07-25 19:04:00
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