Quote:
Originally Posted by murraypaul
The idea that the availability of something for free does not in any way reduce the demand for the paid version is incredible, and requires extraordinary proof. I haven't seen that.
If the local movie theatre had an unlocked back door, with noone watching it, you don't think that the fact that people could sneak in and watch for free would have any affect on ticket sales?
Not every sneak would be a lost sale, but some would. Whether that is 5% or 50% is something about which reasonable people may differ, but to claim either 100% or 0% are equally risible.
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The extraordinary proof is all around you if you care to watch. If there was a movie theater where everyone could sneak in, most people would still pay for the ticket. Some people would certainly exploit the free ride but the majority would consider it below their honor to watch the movie without paying. But the most important thing in this case is that those who had sneaked in, would spend their pocket money on sweets or other things anyway. Someone's loss is other person's gain.
The possibility of sneaking in certainly had some effect on the economics of the community, but it is not certain whether this effect is negative or positive. The freed money might provide the effect of fiscal stimulus to the local economy during the times of economic downturn. Improved economy would bring more income and ultimately more visitors to the movie theater.