← Back to context

Comment by hiAndrewQuinn

5 days ago

Of course this is about cancellation fees. There are so many companies which specialize in hiring leopard tamers to go down into those very basements, photocopy those very forms, and sell them at the front door for a nominal fee. They're like 20% of all my YouTube ads.

You're always paying a fee somewhere to hedge against cancellation risk somewhere in the system. There is no free lunch. It's either going to be in the asking price or at the tail end. You can force everyone to raise their asking price and hence price millions of people out of Netflix for every $1/month you go up, or you can let people self-select.