Free for 30 days and then $14.00/ month – free for 30 days and the $4.99/ month When I first got Netflix, the deal was – 30 days free and then $12.99 per month for more movies than I could ever want. Two years later, I am paying $14.99 for Netflix and AppleTV has just […]

Free for 30 days and then $14.00/ month – free for 30 days and the $4.99/ month When I first got Netflix, the deal was – 30 days free and then $12.99 per month for more movies than I could ever want. Two years later, I am paying $14.99 for Netflix and AppleTV has just launched with 30 days free and $4.99/ month.Netflix and Apple, along with Stan and Disney, are masters of penetration pricing – or buying a database that they can work to secure market share. Penetration is used to quickly gain market share by setting an initially low price to entice customers to purchase, with a view to developing a database that can be leveraged. It generally involves increasing prices over time.The advantages of penetration pricing include: The potential to own a market in a short space of time Facilitating the rapid delivery of economies of scale…