I'm not proposing to replace HBO. I think if they did offer ala carte they would have to look at their costs and then choose a revenue maximizing price. Guessing at what their subscribers would do might be a place to start with that, but I think it probably isn't very informative.
(Say the cost of delivery is $0.05. If they have 4x the customers at $0.50 as they do at $1.00, $0.50 should make lots more money. If the cost of delivery is $0.55, then obviously $1.00 makes more money than any number of users at $0.50.)
(Say the cost of delivery is $0.05. If they have 4x the customers at $0.50 as they do at $1.00, $0.50 should make lots more money. If the cost of delivery is $0.55, then obviously $1.00 makes more money than any number of users at $0.50.)