Canada Imposes 5% Tax on Streaming to Fund Local News, Diverse Content

Re:Canada Imposes 5% Tax on Streaming to Fund Local News, Di... by rahimnathwani on Thursday June 13, 2024 @10:11AM (#40669895)

If one company in an industry faces higher costs, they may not be able to raise prices, as they would lose customers.

If all companies in an industry suddenly face higher costs, that shifts the supply+demand equilibrium.

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Re:Canada Imposes 5% Tax on Streaming to Fund Local News, Di... by naasking on Thursday June 13, 2024 @10:23AM (#40670062)

They're not just competing against other companies though, they're also competing against piracy which places a much needed downward pressure on prices.

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Re:Canada Imposes 5% Tax on Streaming to Fund Local News, Di... by ryandrake on Thursday June 13, 2024 @10:26AM (#40670105)

EDIT: OK I got educated here. Must drink my coffee before posting next time.

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Re:Canada Imposes 5% Tax on Streaming to Fund Local News, Di... by rahimnathwani on Thursday June 13, 2024 @10:33AM (#40670189)

Companies don't seek to maximize revenue. They seek to maximize profits.

Looking at the demand curve alone does not tell you the equilibrium price.

If every point on the supply curve increases by 5%, this will almost change the price at which the supply and demand curves intersect.

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