Here's a reply to a guy in my thread...Netflix and Virtue Signalling


How people spent their fees would shape the supply. If people spent 99% of their fees on chick flicks... then Netflix would get the memo loud and clear and adjust the supply accordingly.

Admittedly though, because Netflix has so many subscribers, how you spent your own fees would be a drop in the bucket. But this is even more true when you shop at the grocery store. But, because everybody spends their limited money on the groceries that most closely match their preferences, the supply closely matches everybody's preferences.

Your premise for Netflix is that the supply closely matches everybody's preferences... despite the fact that nobody spends their limited money on the content that most closely matches their preferences.

Your premise is wrong. If shoppers don't prioritize how they spend their limited money, then there's just no way that the supply will closely match their preferences. What I'm telling you is the truth.

The market works because shoppers prioritize. Prioritizing is the only way to ensure that society's limited resources are put to more, rather than less, valuable uses.

Will I watch Charmed on Netflix? Sure. But is it something that I'd spend my money on? No.

Creating content that consumers are not willing to pay for shrinks the pool of resources available for the creation of content that consumers are willing to pay for.

If Netflix subscribers could spend their fees on their favorite content, then it's a given that some content would receive more money than other content. The creators of the more valuable content would be able to compete limited resources (ie talent) away from the creators of the less valuable content. As a result, the supply of content would be more valuable. But of course our money would be still be limited so we'd still have to prioritize. Doing so would result in an even more valuable supply. It would be a virtuous cycle of value creation.

You believe that there can be a virtuous cycle of value creation without consumers prioritizing how they spend their limited money. What you believe is really wrong.

Believing in the tooth fairy is really wrong. But I could care less if you want to believe this. Your wrong belief wouldn't adversely affect me. But the same really isn't true about believing that prioritizing isn't necessary to have a virtuous cycle of value creation. In this case your wrong belief really does adversely affect me. It adversely affects all of us. It robs us all of content that's more valuable than we can imagine. So please eliminate your wrong belief.