HULU, News Corp – You must’ve missed that class in brand management, eh?

31 03 2010

One of the first lessons I learnt in branding was that if you start selling a product at a certain price, you can always move to a price lower but never higher. Why is that you ask? Well, it’s a simple concept – consumers tend to develop a certain perception of quality for a product or service based on the price they paid for it. Once this perception is established in a consumer’s mind,┬áit’s extremely difficult to change it for the better. Easy to change it for the worse though.

So what are the Marketing geniouses at Hulu and News Corp thinking? First, they offer their product for free and then, expect consumers (who’ve had free access all this while) to suddenly be willing to pay for the same content?! That’s absolutely absurd. I would understand if these companies were at least thinking of offering some premium content or add-ons for paying customers (you know… the “Freemium” model). That may possibly work, some day. For now though, I’m confident that this path that they’re choosing to take, will not lead to profitville.


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