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I don't follow your reasoning. Whatever the delivery costs may be, they don't determine the service cost. That's determined by value to the customer (though del
by noobiemcfoob 8y ago
I don't follow your reasoning. Whatever the delivery costs may be, they don't determine the service cost. That's determined by value to the customer (though delivery costs sets the minimal viable service cost).
Their adherence to a subscription modivates the view of getting users on the platform for as long as possible, regardless of what they're watching. A pay per view model would twist motivations another way.
- 1123581321 8y agoYes, that is my original point I wanted to make in disagreement with you. Netflix does not make more money off a subscription because of underuse, they make money because of, if anything, overuse which is possible because the value to the watcher (some number below the a la carte rental price of $2-5 set by competitors) greatly exceeds the variable cost of providing the view of the show (nearly $0.)