Enhanced Pricing Strategy for EPIX Movie Channels with External Market Considerations
Step 1
Turn to page 473 in your textbook and read the introduction to Case: Spectrum—The Spawn of Time Warner Cable and Charter Communications Navigates Challenges from Cord Cutting and Mobile Competition. Then, read the Background (page 475-491). When you reach Memos, read through the memos and use the attachments available online.
Step 2
Select six (6) memos to respond to, providing the information requested in each within a single document. Your document must be exactly six (6) pages long, one page for each memo. Each page must be in memo format. When responding to the six memos you selected, be sure to identify which memos you are responding to throughout your document.
Memo
To: Regional Vice President, Tri-State Region
From: Pricing Manager, Tri-State Region
Date: [Today's Date]
Subject: Enhanced Pricing Strategy for EPIX Movie Channels with External Market Considerations
Contextual Overview
An inclusive analysis has been conducted following a meticulous examination of market penetration estimates in the Tri-State Region, juxtaposed with the variegated price points for the EPIX Movie Channels. This analysis envelops the internal data comprising subscriber-induced license fees to EPIX and unwavering divisional sales, general and administrative costs, and corporate external market dynamics.
Profit Maximization Analysis
Our exploratory data analysis has revealed a pivotal price point: $9.00 per month is the beacon for profit maximization. At this strategic juncture, we are poised to witness a subscriber swell to 19,760, ushering in a peak profit of approximately $177,737. This increment in subscriber base, catalyzed by a price decrement, deftly balances heightened revenue retention against prevailing price sensitivities.
External Market Evidence
The recommendation for this price recalibration aligns with emerging trends in the broader media and entertainment
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