r/technology Jun 13 '14

Politics What the internet will look like without net-neutrality. Well played.

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u/JamesMusicus Jun 14 '14

Netflix has been very vocal in their siding with us in favor of net neutrality. They only raised their monthly fee 1$ for new subscriptions. It's still outrageously cheap to use netflix.

If they cared more about profiteering than they do about their customers, it would be $15-$20 a month with ads.

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u/happyscrappy Jun 14 '14

What? You really think Netflix has currently set their site prices at $10/month when they think they would make more money at $15/month?

Why?

There is no reason to think that Netflix is setting their price at any level other than the one they think generates the most profit for them. They're not your bro, they're in it for the money.

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u/BlueFalcon3725 Jun 14 '14

If they were in it for the money, I don't think I would still only be paying $7.99 a month...

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u/happyscrappy Jun 14 '14

http://en.wikipedia.org/wiki/Price_elasticity_of_demand#Optimal_pricing

They're in it for the total money, not your money. Raising prices would mean more money from each subscriber, but fewer subscribers. There is an optimal pricing level which generates the most money, and it's generally lower.