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The issue with the WTP argument is that Netflix isn't a singular good - there are many replacement goods (Hulu, Disney+, Prime Video) that push down the price v
by Qworg 5y ago
The issue with the WTP argument is that Netflix isn't a singular good - there are many replacement goods (Hulu, Disney+, Prime Video) that push down the price via competition. The lack of raw materials makes this competition especially good at keeping prices low.
Now, if the oligopoly within video services (or anywhere else) would conspire to raise prices together - that'd be a different story. We've seen this in other digital goods. The Apple and Google anti-poaching agreements come to mind.
- alex_smart 5y agoI disagree. I don't think that different streaming services are replacements of each other. It is inaccurate to think of them as mere "video services" (if they were even Youtube would a substitute which it clearly isn't). Their value is in the exclusive rights they have secured for different content. If a streaming service has an exclusive deal with any one of your favorite shows, you are pretty much going to have to buy it. Speaking for myself, I have bought the subscription of at least four video services in India.