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They certainly do think about the reduction of demand due to increasing price. That’s economics 101, and I would not assume a major business executive doesn’t k

They certainly do think about the reduction of demand due to increasing price. That’s economics 101, and I would not assume a major business executive doesn’t know that. They must have simply thought that the reduction in demand would be small compared to the increased revenue. They are in an existential battle against heavyweights like Apple, Amazon, and Google for music streaming. Adding exclusive podcasts to try to lock in users seems like a good idea to me from a business perspective. I absolutely hate the idea as a listener to podcasts though, and I am glad to see it fail.

skippyboxedhero 4y ago
> They must have simply thought No, they didn't. Paying $200m for Joe Rogan, $30m for Markle...these deals made no sense regardless of any economic model (as I allude to above, they also did strange deals where they tried to bring in someone from outside podcasting). And the reason I wrote the meta thing at the end: I have seen companies do this repeatedly and I have seen young equity analysts get caught up in it because they think the same way you are thinking. Yes, we live in a world where a business exec can waste billions of dollars on a totally unfounded hunch, they don't think it over, they don't look at the numbers, they are just like everyone else and will repeatedly do things that make no sense at all (it is actually far easier for someone who isn't in the industry and without business training to spot this...when people are in this situation and getting paid $10m/year for nothing, they tend to think they are geniuses and everyone else an idiot and end up making decisions like this).
yenda 4y ago
I think you give too much credit to some execs, my experience is that sometimes the short term is the only thing they pay attention to when investors' money is flowing and there's more to grab. The only reason we see this headline is because dumb money ran out last year'

skippyboxedhero 4y ago

> They must have simply thought No, they didn't. Paying $200m for Joe Rogan, $30m for Markle...these deals made no sense regardless of any economic model (as I allude to above, they also did strange deals where they tried to bring in someone from outside podcasting). And the reason I wrote the meta thing at the end: I have seen companies do this repeatedly and I have seen young equity analysts get caught up in it because they think the same way you are thinking. Yes, we live in a world where a business exec can waste billions of dollars on a totally unfounded hunch, they don't think it over, they don't look at the numbers, they are just like everyone else and will repeatedly do things that make no sense at all (it is actually far easier for someone who isn't in the industry and without business training to spot this...when people are in this situation and getting paid $10m/year for nothing, they tend to think they are geniuses and everyone else an idiot and end up making decisions like this).

yenda 4y ago

I think you give too much credit to some execs, my experience is that sometimes the short term is the only thing they pay attention to when investors' money is flowing and there's more to grab. The only reason we see this headline is because dumb money ran out last year'