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I'm not sure I get the title, or maybe it's the content that I'm missing. What I understand is the author (possibly the poster too) is saying that Netflix will
by pedalpete 11y ago
I'm not sure I get the title, or maybe it's the content that I'm missing.
What I understand is the author (possibly the poster too) is saying that Netflix will start charging a premium in the future on the media assets it is buying now.
I'm no media expert but I'd suggest this is wrong (sure they may increase prices but I doubt out of a reasonable scope) because 1) there is ALWAYS competition for entertainment, meaning there is a ceiling in how much they can charge. 2) Piracy is too easy, meaning what they are really competing with is free. I think any price gouging in entertainment is likely to run up against this issue.
If netflix is the only place I can watch House of Cards, and it costs $50, I either won't watch it (do I really care that much?) or somebody else who got it will pirate it. But why would somebody pirate it when they paid $50? Simple, if I paid for it, and I thought I over-paid, you are my friend and you didn't pay for it because you thought it was too much, maybe I give you a copy because I'm a good friend. Of course, you know so much more of the world would want to enjoy it, but don't want to pay, so you make it available to more people.
The price of netflix may be artificially low right now, but is it 30% low, or 200% low? I'd suggest 30% and I suspect we'll see marginal increases in subscription fees over the next few years.