I’m pleased to present the 389th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

On today’s podcast, David Tice, SVP, Consulting at GfK, a global market research company, joins us to discuss factors Disney should be considering about how to price its OTT service that will launch in 2019.

David has researched for several years the maximum perceived value that subscribers of Netflix, Amazon and Hulu place on these services, finding that there’s a “natural limit” of around $11 per month per service. Value perceptions have increased a bit over the past 3 years but have stayed in a relatively tight range between approximately $8-$11 per month.

The research highlights the tight spot that Disney is in, because given the extensive content CEO Bob Iger has indicated will be included and the need to protect existing pay-TV relationships, the company will be very tempted to price higher than $11 per month, just as HBO Now has done. However, such a decision could significantly limit demand as occurred with HBO Now.

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