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Strategystandard
A streaming service lost subscribers after a price increase. Should it roll back the price?
How to approach it
Look at revenue, not just subscribers. Fewer subscribers paying more might still be a win.
How a strong answer opens
“Before rolling back, I'd look at revenue, not just subscribers. Fewer subscribers each paying more might still be a win.”
Outline of a strong answer
Try answering out loud for a few minutes before you open this.
- Measure revenue impact, not just churn
- Segment who left and who stayed
- Consider long-term effects on growth
- Options: roll back, add a cheaper tier, add more content to justify the price
- Weigh brand and trust costs of a public reversal
- Recommend from the revenue result: if revenue per household rose, keep the price and consider a cheaper ad-supported tier for price-sensitive users
Where this question usually goes wrong
Rolling back because subscriber counts fell, without checking revenue or who left.
Learn the method
Worked cases 4 to 6 in Module 5, Product strategy.
The full kit has worked answers in full, start to finish, for every round type. $129 once.
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