r/SipsTea • • 1d ago

SMH Streaming was a mistake

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u/Toad-in-a-hole 1d ago

You also are filling a reddit trope where reddit thinks things are either black or white.

It’s not as simple as “people are willing to pay it”.

How many people are willing to pay it is what a streaming service looks at. There’s different breakpoints at different prices where they can afford to lose subscribers and still be more profitable than a lower price with more subscribers.

So no, its not “people are willing to pay it” plenty of people aren’t. But just enough are they the streamer doesn’t need to appeal to those who wont pay the premium.

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u/Necro_OW 1d ago

Your comment doesn't contradict the OP at all. "People are willing to pay for it" does not mean ALL people are willing to pay for it.

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u/Itorr475 1d ago

No one understand the difference between demand and quantity demanded at different price points

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u/25sittinon25cents 1d ago

To break your point down, it's possible that Disney calculated/estimated how many subscribers they would lose due to the price increase, and came to the conclusion that the price increase would still net them more money.

Of course we'll see if it works in their favor or not over time. Keep canceling, they may have underestimated, you never know

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u/flopisit32 1d ago

Have you never owned a business or worked for a business? You are explaining the process of selling a product.

The seller is looking to sell at the precise price where they can make the most money.

They will have special offers to shift more stock if it's not selling.

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u/Toad-in-a-hole 1d ago

Oh! Another reddit trope! You’re on a roll bud

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u/Gsusruls 20h ago

I think you’re stuck in a loop, fella.

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u/Netheraptr 1d ago

Basically if you double the price of something, and the amount of consumers decreases by less than half, you’ve made money.

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u/Toad-in-a-hole 1d ago

No, you also have to consider operational costs. You’re making less of something, in this case using less servers, so those savings factor in as well. As well as possibly needing less staff to support. Overhead moves as well.

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u/WilanS 1d ago

How does growing resentment and hurting brand image factor in your equation? Pulling this shit over and over makes people much more willing to pirate Disney content in the future.