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Economies of scale dictate the opposite. Fixed costs stay the same no matter the subscriber count, this would allow Netflix to lower the price, while maintaini
by dntrkv 5y ago
Economies of scale dictate the opposite.
Fixed costs stay the same no matter the subscriber count, this would allow Netflix to lower the price, while maintaining the same profits. In reality, they would likely keep the price the same and increase their margins without charging more.
- tharkun__ 5y agoWhat's the ratios of fixed to variable cost for Netflix and how many subscribers does it need for the economies of scale to go beyond a few cents?