Many other OTT platforms also deployed this strategy later to attract new customers.Īnother great example could be comparing two smartphone companies like Apple and Samsung. Once users get hooked to the forum, they are more likely to pay for the coming months rather than miss out on the many series available. The perfect example of penetration pricing done right is Netflix.įor every new subscriber, Netflix initially provided a one-month free subscription to try out all the content on the platform. Such an assumption could hamper the brand’s image significantly, making it harder to compensate for the initial low prices in the future.Įxamples of Penetration Pricing Strategies
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