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by slg
2183 days ago
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Subsidizing new content and making it easily discoverable are the primary reasons for bundling. When new content comes to you for free with your existing purchase, the only thing stopping you from trying it out and potentially getting hooked is your willingness to commit time to it. If every piece of content had a price associate with it, people would be much less willing to try new things. This same principle applies at both the individual show level and at the channel level. The people selling you this content want you to consume as much as possible so you don't associate your purchase with a single show and end up canceling HBO once Game of Thrones ends. You can see how this lack of bundling might impact content by looking at movies which are traditionally more a la carte. Movies are produced under the assumption that they all need to be financially self sufficient. The end result is that most content produced is either blockbusters based off big budget IP (which tries to address discoverability) or low cost and easy to produce content that can potentially be hugely profitable if it hits. The mid-budget TV (traditional TV mainstays like sitcoms would generally fall into this bucket) would likely disappear if everything was purchased a la carte. It is also worth considering that most of the streaming content providers all do the same bundling as the traditional powers like Viacom. The difference is that the Netflixes of the world don't organize their content into channels. However there are definitely different verticals within these companies. Netflix has one for comedy[1] that is the equivalent of Viacom's Comedy Central, they just don't actively separate this content from the rest of their catalog. [1] - twitter.com/NetflixIsAJoke |
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