I think that what’s happening with Netflix and Uber only shows how unsustainable it is to disrupt the market with cheap prices and a goodish service in order to dominate and remove all competition from the market only to later, inevitably, raise prices and stop the innovation.
To me, it’s clear enough that competition won’t dissappear and now users will be less than happy, since what they were used to is now being taken away due to raising costs of operation and the demand for ever-growing profitability by the investors.
But Netflix didn’t even have cheap prices, they made a boatload of.money and even had some to spare to create their own productions, which was out of scope when they were still just a DVD rental company.
I think that what’s happening with Netflix and Uber only shows how unsustainable it is to disrupt the market with cheap prices and a goodish service in order to dominate and remove all competition from the market only to later, inevitably, raise prices and stop the innovation.
To me, it’s clear enough that competition won’t dissappear and now users will be less than happy, since what they were used to is now being taken away due to raising costs of operation and the demand for ever-growing profitability by the investors.
But Netflix didn’t even have cheap prices, they made a boatload of.money and even had some to spare to create their own productions, which was out of scope when they were still just a DVD rental company.
Yeah, I deeply wish it wasn’t possible for companies to conceal the true cost of something and intentionally run at a loss
It just creates an unsustainable mess, that inevitably comes undone
If it costs $30 per user to run the service, then charge that, simple