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0 pointsmichaelt7y ago0 comments

  Both are transactions where resources
  are being traded for "goods".

When people own a rack of DVDs, film industry revenue rises when more good films are released, and falls when fewer good films are released - it's not a fixed-sum competition.

When people own a netflix subscription the industry is in a fixed-sum competition. The industry makes $X per subscriber per month, whether the average movie is Citizen Kane or The Emoji Movie.

0 comments

tyrust7y ago

Treating "the industry" as a single entity doesn't make sense.

Netflix takes that $X per subscriber per month and splits it up between all its different licensing contracts with different publishers. From the publishers' POV it's not all that different. In the past if they released good movies more people would buy more tickets, tapes, DVDs, etc. to view them; today, Netflix is willing to pay more to host better movies. I don't think that Netflix would pay the same for Citizen Kane and The Emoji Movie (now, which one they would pay more for I can't answer, but their analytics probably can make a guess :)).

wetpaws7y ago

I cancelled my Netflix subscription due to the lack of good movies. Pretty sure they track it carefully.

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