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by ghshephard 4120 days ago
Let's say your average HBO subscriber watches 5 shows/weeks, so 20 shows @ $15/month - the cost would have to be closer to $1.00/show to cover it ala carte, particularly as they won't have you locked into a guaranteed $15/month.
1 comments

I'm not proposing to replace HBO. I think if they did offer ala carte they would have to look at their costs and then choose a revenue maximizing price. Guessing at what their subscribers would do might be a place to start with that, but I think it probably isn't very informative.

(Say the cost of delivery is $0.05. If they have 4x the customers at $0.50 as they do at $1.00, $0.50 should make lots more money. If the cost of delivery is $0.55, then obviously $1.00 makes more money than any number of users at $0.50.)