Re:Kevin Spacey on the potential of Netflix to disrupt tradi...
by ballard on Sunday September 01, 2013 @11:22PM
(#6313318)
Yeap. Locking it all away for an absurdly high price or just giving it all away are suboptimal. Charge a "no brainer" price that most people won't have a problem with is supply meeting demand more optimally... For potentially higher profits.
Off-hand, the easy out would be that 'giving people what they want' is actually pretty costly. The steep pilot culling selects for mass appeal. If 80% of the (paying) viewing public like a pilot, it's probably a low-risk venture with pretty predictable rewards. If those returns (ROI) are sufficient to keep the studio running, do the people writing the checks really care that more niche products _might_ gain slightly better rewards?