The cost in electronic services is in acquisition; the nominal cost to deliver services to a paying subscriber is lower than acquiring a new one.
Yes you would flatten your margin with existing customers by not hiking their rates (or not as much) but pretending there won’t be defection assumes near monopoly–which the US has permitted largely for the last 4 decades.
Cell phone companies made it super easy to leave by only offering good discounts to new customers.
Shares of Netflix closed down more than 35% Wednesday after the streamer reported earnings Tuesday evening that showed it lost subscribers for the first time in more than 10 years.
That sounds like terrible economics when you have hundreds of millions of customers who will likely just accept it
The cost in electronic services is in acquisition; the nominal cost to deliver services to a paying subscriber is lower than acquiring a new one.
Yes you would flatten your margin with existing customers by not hiking their rates (or not as much) but pretending there won’t be defection assumes near monopoly–which the US has permitted largely for the last 4 decades.
Cell phone companies made it super easy to leave by only offering good discounts to new customers.
Netflix are saturated, let’s not pretend they need new subscribers
Jesus…
This is a couple years old but:
https://www.cnbc.com/2022/04/20/netflix-plunges-trading-subscriber-loss.html
The product is the stock price.
Amount of subscribers effects stock price.
They raise price as a reaction to not meeting aubscriber goals.
Which is a short term fix that needs to be done over and over again.
Then you don’t understand why long term reliable customers are better than intermittent ones…
Which means you don’t know anything else about business, and are just going off vibes
I’m sure they tested it and found that enough customers would stay to make it profitable.
Consumers, especially Apple users, accept higher prices. It’s baffling to me but true.
In 2014, Netflix was $8/month. It’s now 12 years later and Netflix is $20/month.
It’s a numbers game. Are there so many? Why else would a company care?
You said basically nothing that counters anything I said
Enjoy getting back to high school
Upvote because you are right. Doenvote for the unnecessary insult.
Downvote more then