Although Warner Bros is undoubtedly one of the most successful firms in the entertainment industry, there are some downfalls in terms of the firm’s product strategy. These weakest aspects include the pricing of their streaming services, segmentation and the pricing point of films. On the other hand, the three strongest aspects of Warner Bros’ product strategy is their programming monetization, hiring of big name actors and the building/maintaining of the franchise. Warner Bros has been able to create sustainable prices in the digital age through programming monetization. Netflix and the CW Network (owned by Time Warner Bros) recently entered a content licensing agreement in which Netflix will be the exclusive provider for subscription video demand of the CW Network. This strategy is to increase Warner Bros’ intellectual property through monetization via the digital network arena. In addition, Warner Bros is able to hire the most elite actors in the business. Consumers are more likely to buy a product or view a film if they know who the actors are and their quality of acting. This in turn gives Warner Bros a strong theatrical slate which will attract more consumers. Lastly, Warner Bros successfully maintains/builds its franchising. From 2016-2020 Warner Bros is expected to release 17 movies from its DC, Lego and Harry Potter franchises.
At a Times Warner investor meeting in 2014, Warner Bros CEO Kevin Tsuijhara talked about his plans to increase profits while doubling the amount of content they release to the public. In this meeting, he talked about how the technology available today has “created new platforms and millions of new connected new customers” (Warner Bros). As talked about above, the success that Warner Bros has had makes it undebatably one of the leading firms in the entertainment industry, allowing to maintain producing top-quality products due to the high level of technology and talent involved. The caliber of entertainment Warner Bros produces allows customers to be satisfied with the price, as well as providing the differential advantage over competitors who cannot maintain the same level as of assets. The pricing strategy is completed as customers value and are willing to pay for the products that Warner Bros provides due to the high quality, making it tough for competitors to keep up at the same level.
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