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> I don't understand why they would choose to make video quality the main object of price discrimination I think this is how perfect society should work when m
by lightgreen 8y ago
> I don't understand why they would choose to make video quality the main object of price discrimination
I think this is how perfect society should work when marginal cost is zero.
Netflix cannot directly charge proportionally to your income.
But the cost of your TV set is somewhat proportional to your income.
If you have 4K TV then you are rich, and you can afford to pay more. To allow poor people who cannot even buy FullHD TV to pay less.
So everyone can watch movies, poor folks can afford it, and rich people won't mind the price.
In another word, it would be worse (from a society point of view), if the price was constant, but only rich people could use Netflix.
(BTW this is how people pay for government services with taxes: rich people pay more money (even with flat tax rate) but get the same service).