Quote:
It's really interesting to consider the glut of free content with game theory in mind. Is it
worth it for TGP owners to saturate the market in order to make meager profits themselves if
it decreases the overall sales in the entire market?
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Colin, this question would be good if the TGP owner had something to lose to start with - they don't. They start with no income, move up to some income, they are better off than when they started. From their solitary point of view, things went from worse to better.
The people paying the price are not related to the ones making the new income, so there is no feedback circle to stop the negative results. Program owners know that if they start to turn down TGP traffic (not even sure how they could), someone else will take it and they will lose MORE sales as a result.
The one thing I have learned in this business is that there is always someone willing to work on an even smaller margin. It's stunning, sometimes.
Alex