Impact Pricing Blog

Disney Understands Value

So often I sit in my home office wondering why companies don’t understand value. Or at least they don’t act or talk like they do. Yet I was thrilled to read this quote by Bob Chapek, the CEO of Disney, about raising prices on Disney Plus. 

“We’re really thrilled with the price-value relationship that we offer consumers. I think that’s born out by the fact that, in the US, when we took our first price increase, we didn’t really observe any significantly higher churn than we had been seeing. And internationally, when we did the price increase there, we also added the Star content at the same time as a sixth brand tile and we actually saw an improvement in our churn rate, more retention. So I think that really says something about the price-value relationship.”

I took two things from this quote: 

First, Bob Chapek equates consumer value with willingness to pay. They raised their prices, and consumers will still willing to pay their price. That said to him, they are delivering a lot of value to their customers. I love that. 

Second, they treat every price increase as an experiment. They raised prices in the US and looked at churn.  Didn’t change much. They raised prices Internationally while adding more value and churn went down.  Although he didn’t say it, I trust he’s also looking at the rate of winning new customers.  

Reading this quote made me smile. The CEO of a very successful company understands and talks about value. It doesn’t surprise me they are successful.  

What about you? Have you made value the cornerstone of your thinking? Value is what your buyers buy. 

Value is what keeps customers buying.

Value is what your company has to create, communicate, and capture.

Value should be on the top of your mind … always.

Who knows, maybe one day you can be CEO of Disney.  🙂 

Tags: pricing strategy, pricing value

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