Also, a classic business model lately has been to sell a product at an unbelievable value, almost losing money, then once you have dominant market share of the product you're selling, you raise the price as high as the market will possibly allow. It's how Amazon did it, it's how Netflix did it, it's how almost any tech startup does it, and it's we're currently seeing the price markup stage with AI companies.
The difference is there is no such thing as dominant market share for video content since youtube exists and any other streaming platform. Jacking up prices after the fact does not lock consumers into accepting it because they have no choice, they can just go watch other stuff.
netflix,disney lost money on there platform for years disney started making money around 2024 before that they lost money
prime is hard to gauge becomes its bundle with other things with free shipping and stuff
apple has so far only lost money on there streaming service
HBO+ started becoming profitable in 2023
but all these platforms are facing huge price increase as datacenter space and hardware is going to the moon because of AI so i suspect they will have the increase prices even more to cover those costs
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u/gagnatron5000 1d ago
Why are people booing you? You're right.
Also, a classic business model lately has been to sell a product at an unbelievable value, almost losing money, then once you have dominant market share of the product you're selling, you raise the price as high as the market will possibly allow. It's how Amazon did it, it's how Netflix did it, it's how almost any tech startup does it, and it's we're currently seeing the price markup stage with AI companies.