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by sujNansnam 2387 days ago
The mistake you’re making is thinking there is a such a thing as “50 cents a month” of content. HBO was never going to sell you Game of Thrones for 50 cents. Netflix was never going to sell you House of Cards for 50 cents. They are selling you [your favorite show] for $10 and throwing in the rest of the catalog. Digital content has zero marginal cost. That means that a provider would rather sell you every show in their catalog for $11 then just the one show you want for $10. Turns out most consumers prefer that option too. If they don’t, they can still buy the individual unbundled seasons.
1 comments

> Digital content has zero marginal cost.

In Netflix’s case, I’m not sure this is true. I’ve heard that some of the content is paid based at least partly on usage.

That has never been true. Just take a look at all of their announced content deals.