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Joined 1 year ago
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Cake day: June 24th, 2023

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  • In three years, this went from a very niche behavior to an absolute mainstream part of the market

    It’s because of the fracturing of the marketplace. For a while there were only a few major Film/TV streaming services. Netflix and Hulu, then HBO and Amazon, and a handful of niche or genre platforms.
    Then around the pandemic time, every network and their mother decided to pull their licensing to start their own streaming platform or several. The platforms all cost as much or more as before, but you need more of them to watch the different IP you are interested in.

    What the studios don’t realize (or won’t publicly admit) is that instead of replacing cable TV, they have effectively recreated the video rental industry.






  • Yes. Theoretically they can drive people away and make more money if the people they haven’t driven away spend more for less goods.

    Let’s imagine on a normal lunch hour I sell 100 burgers at lunch for $4. If I raised my price to $4.50, I’d only sell 80 burgers. If I raised the price to $5 then I’d only sell 50 burgers If a burger costs me $3 then I normally make $1 a burger, but at the middle price I make $1.50, and $2 at the high price.

    100 burger x $1 = $100 profit
    80 burgers x $1.5 = $120 profit
    50 burgers x $2 = $100 profit

    The trick is figuring out how changing price will affect demand without pissing all your potential customers off. Restaurants already do dynamic pricing with Happy Hour and Taco Tuesdays etc. They give a “discount” to entice more people to come in when they are less busy.