The missing variable is the cost of providing content 24/7. In an on demand setting, I imagine total revenue may drop, but production costs would also drop.
I may be way off base though. Does anyone with more experience wish to correct me?
When you look at the costs of television, the marginal costs to keep on transmitting a bundle of channels to everyone in the neighborhood is a rounding error.
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The missing variable is the cost of providing content 24/7. In an on demand setting, I imagine total revenue may drop, but production costs would also drop.
I may be way off base though. Does anyone with more experience wish to correct me?
When you look at the costs of television, the marginal costs to keep on transmitting a bundle of channels to everyone in the neighborhood is a rounding error.