[dmitriid]

Netflix doesn't have enough content, so they resort to these tactics.

All major content providers left them years ago and started their own Netflixes. So they're left with a few movies from ten years ago, a couple of recent-ish releases, and their own content.

[wardedVibe]

really, content creators should be banned from creating markets like Netflix (and eventually the other way around), but that would require the regulation to not be asleep at the wheel.

[scarface74]

Are you really saying that creators shouldn’t be able to publish their own content on their own infrastructure?

[wardedVibe]

Should've specified I meant movies and other large conglomerates that tend towards oligopoly. I mean things like Disney+ shouldn't exist, its extending the concentration of market power vertically too.

[scarface74]

I real wish that HN wannabe lawyers would stop throwing *poly words around with no legal justification.

In the streaming space in the US there is: Netflix, Disney+, AppleTV, Amazon Prime Video, HBO/Discovery, Paramount Plus, Peacock, STARZ, and a few other players. There is no “opoly” in streaming video.

[eskaytwo]

That’s still a small number of players dominating the market. That’s the definition of an Oligopoly, and the Disney/HBO offerings very much fall into that.

They certainly have the ability to uniformly raise prices (tacit collusion) with no viable competition to enter the market and fill the gap (as even the vast sums others have thrown into it have shown how hard it is to produce good original content).

This is probably due to the characteristic that producing goods (decent original content) in this market is a big barrier to entry - which naturally leads to a small number of players. Natural monopolies and oligopolies are common - but do require closer regulatory attention to ensure desirable consumer outcomes than just letting the free market decide.

It may not entirely fit all definitions, but the general economic theory and applications/implications are relevant to consider this market.

The original post that you questioned was related to vertical integration - you could effectively find and replace it to “so you’re saying producers of operating systems shouldn’t be able to make their own web browser?”

[scarface74]

> That’s still a small number of players dominating the market. That’s the definition of an Oligopoly, and the Disney/HBO offerings very much fall into that.

The market is “content”. Netflix competes with YouTube content producers, TikTok and it even said that one of its biggest competitors is Fortnite.

> This is probably due to the characteristic that producing goods (decent original content)

This goes back to YouTube. You and I may not think that YouTubers and TikTokkers are producing “decent original content”. But there is a generation that spends hours on both.

Besides that, there were over 550 original series being produced last year (https://collider.com/too-many-tv-shows-550-series-2021/). Competition is much fiercer for your attention than it was when you only had the three major networks producing content and everyone else buying rights to show reruns.

There are bidding wars between all of the streaming services for new content from producers. Competition is more fierce than ever.

The price of streaming before was never sustainable. Netflix was borrowing billions a year for years to produce and obtain content. Disney+ was never going to be profitable selling its service at the introductory price. It’s not “collusion”. Every company has to turn a profit eventually.

Yes I realize that Netflix was “profitable” by GAAP standards. But it was getting deeper in debt every year.

[bryanrasmussen]

>The original post that you questioned was related to vertical integration - you could effectively find and replace it to “so you’re saying producers of operating systems shouldn’t be able to make their own web browser?”

I think time has shown MS was correct in making their own browser, but of course incorrect in all the corrupt tactics they used to make their browser succeed over Netscape's.