Probably a good idea. And it looks like Netflix simply needed to make the service a bit more expensive?
So how would that have helped smaller competitors? Where were they going to get the money from to compete if not other lines of businesses or borrowing? Were they going to charge their first 10,000 customers $100,000 a year so they could fund development without either borrowing money or take it from existing businesses?
> So how would that have helped smaller competitors? Where were they going to get the money from to compete if not other lines of businesses or borrowing?
By borrowing at market rates and pricing services to cover the loan payments.
You're actually making a good argument why cross-financing should not exist at all and that we all would probably be better without it.
