NetFlix: America's Most Underestimated Company
This is a tangential pricing-related question:Why does Netflix, which is solving some hard and interesting problems both on the technical (delivery/algorithms) as well as business side (licenses etc) only charge $9-$15 a month whereas online services like dating sites and project collaboration SaaS tools that are arguably much easier to build get away with charging anywhere from $30 to $60 a month?If pricing is about supply and demand, shouldn't Netflix be able to charge a lot more (at least double of what they do now) since there aren't any comparable services with the level of user satisfaction as Netflix. I would gladly pay $30 a month for Netflix just because of how great the service is - I mean unlimited instant watching, access to some amazing foreign films, DVDs. Dating sites and some other SaaS services - dime a dozen. When a Match.com asks me to pay $30 a month, I cringe.I'm perplexed by this.