Quote:
Originally Posted by The Yen Man
Bad analogy IMO, but if you want to use it, then it's actually like you having a magic machine that duplicates the beetle for free and then put out there with the keys in the ignition.
The real loss isn't the fact that the beetle is gone. Its the opportunity cost associated with the fact that a paying customer can get the beetle for free rather than pay your dealership for one.
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The opportunity cost is a sliding scale too. The dealership offers the beetle for $30k and a customer would never buy a beetle for $30k. If the customer would only pay $10k for a beetle, that is the real opportunity cost.
In cases like Netflix, iTunes, or Steam, the ease and relatively low cost for consumers shows that if the entertainment industry changes their business strategies, they can survive and even grow.