[cbzoiav]

The problem with bloomberg lite is many of those users are now paying $10k instead of $25k.

For years their major customers tried to force them into offering an Instant Bloomberg (IM) only license because senior traders insisted their PAs had it. It was only after several senior banks (whenever a single bank had tried the top talent threatened to quit) forced their users to use symphony that Bloomberg relented.

[manquer]

Yes to start with, you differentiate the value by giviing limited features at lower price point so people who need everything clearly not going to be interested.

If there is enough interest on the new product you add features to new version and start hiking the price of both so relative price difference remains similar. There will not be a negative impact on revenue in that approach

You could grow the new product in a different direction completely for whole new user who are ready to pay 10,000 but not 25,000. The 25k terminal is still aspirational and exclusive as it is now, if the premise that people are paying for the exclusive network is true both products can work on their own and 10k community can feed into 25k on, if not well there was never a moat to protect in the first place.

[cbzoiav]

The thing you miss is the ecosystem tie and just how many users could get by with only the base functionality.

i.e. Paying $25k for an IM system for a PA or some basic trade management functionality for a middle office analyst is ludicrous.

But you're also not going to force the trader bringing in millions to run 5 different systems when he knows Bloomberg can do it all and your competitor would give it to him.