What would you price the bundle at

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Reference no: EM133496547

Case: You are Hollywood mogul. You would like to integrate and offer a bundle of 3 streaming services. They are Paramount Plus, Hulu and Peacock. What should you do. Let us pretend that the marginal cost of providing each product is zero. You want to maximize profits. Assume there are 1 million of each customer type. Here are their subscription charges for one month.

Paramount	Hulu	Peacock
Customer Type 1	$5	$10	$20
Customer Type 2	$15	$10	$10
Customer Type 3	$20	$15	$5

Question 1: If you had to sell each product separately, what would you price them at to maximize profits?

Question 2: If you had an option to bundle the three services together (a pure bundle, no separate or al a carte purchases possible), what would you price the bundle at?

Question 3: How much would this pure bundle increase or decrease profits by?

Reference no: EM133496547

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