Pricing Strategy Dynamics of Streaming Giants and Their Impacts on Consumer Decision-Making Behaviors

Abstract

This paper examines how pricing strategies shape consumer decision-making in the increasingly competitive global streaming market, using Netflix and Disney+ as leading cases. Employing a comparative case study approach, the analysis focuses on subscription tiering, bundling practices, regional pricing variations, and account-sharing bans to understand how such strategies affect adoption, retention, and customer loyalty. Findings reveal that consumers are influenced not only by functional price points but also by psychological reference prices, intellectual property strength, and brand-driven marketing. Netflix emphasizes innovation through flexible tiering and differentiated packages designed to cater to varied consumer segments, while Disney+ relies more heavily on affordability, bundling with related services, and capitalizing on brand loyalty tied to its extensive content library. Together, these contrasting strategies highlight different pathways to achieving growth and sustainability in a highly competitive environment. More broadly, the study contributes to understanding how pricing policies, when combined with strong branding and IP advantages, can stimulate consumer engagement in digital subscription markets.