When I think about Netflix and Disney Plus, their pricing strategies really do more than just decide how much I pay each month, they actually tell me a lot about how each brand wants to be seen. Netflix positions itself as the "default" streaming service, so their tiered pricing feels like an attempt to grab every kind of viewer, even though sometimes it feels confusing and too many options.
Disney Plus, on the other hand, leans hard into bundles with Hulu and ESPN Plus, trying to frame itself as the family friendly but also versatile option. The pricing strategy matches that image pretty well, but some people still find the constant price hikes to be a little off putting because it clashes with Disney’s reputation for magical consistency.
What’s interesting is how this connects back to brand equity, because a messy pricing strategy can actually hurt how loyal customers feel. Netflix’s recent crackdown on password sharing makes their value pricing look less about "value" and more about squeezing users, which makes the brand image weaker then before.
If I were advising these brands, I’d suggest Netflix simplify its tiers so that the price actually aligns with the brand promise of easy entertainment. Disney Plus could lean harder into experiential perks like discounts on theme park tickets or merchandise, since that would make their subscription feel more connected to the overall Disney experience and not just another streaming app.
Another part of this battle is the way consumers perceive fairness. When a price increase comes without any real added value, people feel taken advantage of and they talk about it on social media alot. That negative word of mouth spreads quickly and damages brand equity even more.
“Effective pricing strategies align with the brand’s value proposition, market positioning, and consumer expectations, thereby enhancing brand equity and market share.” Brand Constellations
It’s also worth noticing how competitors like Apple TV Plus and Amazon Prime Video use different strategies. Apple TV Plus keeps prices low to attract subscribers and build awareness for its ecosystem, while Amazon bundles Prime Video almost as a bonus with Prime shipping. Those choices communicate different brand positions and really show how pricing is part of the story each brand tells.
At the end of the day, pricing isn’t just a number on a monthly bill, its part of the whole brand narrative. In an industry where switching services is so easy, the way Netflix and Disney Plus manage pricing will decide if customers feel like they’re being offered true value or just another bill to cancel.
Read Last Blog Post: When Buying Feels Risky: Post Purchase Dissonance in Everyday Life