Richard Reisman
Nov 1 · 1 min read

You are right that this is not winner take all, but wrong that the question is silly. What is telling is that you say “every major streaming service will succeed” — implying rightly that less major ones will be hard-pressed.

The problem is the all-you-can-eat (AYCE) model which creates huge deadweight losses

  • for viewers who either cannot justify subscribing or do not get their money’s worth
  • for providers who lose out on those who want to watch some of their content, and on those who watch a great deal but only pay and average price

Now that we have this open market of direct and aggregated providers, we need a value-based pricing model that works for a wider range or viewers with widely varying mixes of viewing and enable a mix of direct and aggregated providers to co-exist harmoniously. My “Risk-Free” Subscriptions to The Celestial Jukebox? suggests such a model.

Richard Reisman
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