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Streaming services truly flip the "economic calculation problem" [0] on its head: the stakeholders would supposedly gain more reliable information on the value
by lukifer 5y ago
Streaming services truly flip the "economic calculation problem" [0] on its head: the stakeholders would supposedly gain more reliable information on the value of different IP licenses if we all made purchases a la carte. As it is, they have little idea which program I'm hate-watching ironically, vs what's good enough to convince me to stay on the service (Midnight Mass), vs what I'd pay for exorbitantly out of pocket if I could (OA season 3).
Yet clearly market forces have spoken: the desirability and convenience of the "club goods" model is strong enough to overwhelm any advantages of the transaction model; and the streaming services clearly believe their usage data and analytics are good enough to give them reliable correlations with subscriber acquisition and retention, so they can decide what to license and produce. (While telemetry surely helps, it's worth noting that HBO made this model work for decades based solely on surveys and brand cachet.)
See also: https://www.versobooks.com/books/2822-the-people-s-republic-of-walmart https://www.versobooks.com/books/2822-the-people-s-republic-...
[0] https://en.wikipedia.org/wiki/Economic_calculation_problem https://en.wikipedia.org/wiki/Economic_calculation_problem
- philistine 5y agoTV networks have been doing this for coming on a century now. You're right, it's a problem, but one the industry is accustomed to operate within.