Buffet or à la Carte: Pricing Digital Goods

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Author(s): Deepti Verma (Nanyang Technological University, Singapore), Gaurav Gupta (Nanyang Technological University, Singapore)and Kamat Keshav (Nanyang Technological University, Singapore)
Copyright: 2012
Pages: 11
Source title: Understanding the Interactive Digital Media Marketplace: Frameworks, Platforms, Communities and Issues
Source Author(s)/Editor(s): Ravi S. Sharma (Nanyang Technological University, Singapore), Margaret Tan (Nanyang Technological University, Singapore)and Francis Pereira (University of Southern California, USA)
DOI: 10.4018/978-1-61350-147-4.ch004

Keywords: Information Science Reference / Interactive Technologies / Media & Communications / Multimedia Technology

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Abstract

Pricing strategy plays a key role in most organizations. The pricing decision of bundling or à la carte in the case of cable television industry is a long debated one. While consumers seem to favor the à la carte option, operators are persistent in continuing with the bundling options. In this chapter, we explore both sides of the argument. We then discuss several factors affecting the players in the eco-system of cable television industry; these include the subscriber-operator relationship, operator-distributor relationship, and the role of government policies affecting their decisions. In concluding we use these factors to conceptualize a framework that seeks to assist the players in the cable television industry in choosing an adequate pricing model.

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