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Since everyone is pitching their own solutions, how about I post mine. Let's take the example of Netflix and Comcast. Instead of no deal with Comcast, and thus
by neil_s 12y ago
Since everyone is pitching their own solutions, how about I post mine. Let's take the example of Netflix and Comcast. Instead of no deal with Comcast, and thus giving Comcast Netflix users really slow or no service, Netflix should make the deal for now, and tell subscribers that if you use Comcast the Netflix rental is higher. By passing off the higher costs to the users, Comcast customers are given the incentive to switch ISPs.
Everyone shows loss aversion, and so will be determined to find out why being on Comcast gets them penalised. They will learn about its dick moves, and complain to Comcast to make them remove these fees so they can access Netflix, which they have already paid for access to.
- Jtsummers 12y agoNetflix would lose, they have competitors and Comcast (and potentially, in the future, ComcastTWC) has too many customers. Increasing the costs to all of them would result in the loss of too many customers before the dust settled.