> If there are suddenly 100 million new people who want to buy a Netflix subscription, it isn't like we are going to see the price of a Netflix subscription go up because there isn't enough Netflix to go around.
No, it would go up because they would make more profits with fewer subscribers and a higher margin.
Fixed costs stay the same no matter the subscriber count, this would allow Netflix to lower the price, while maintaining the same profits. In reality, they would likely keep the price the same and increase their margins without charging more.
No, it would go up because they would make more profits with fewer subscribers and a higher margin.