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Netflix's services are considered which type of good? Private good. Common good. Public good. Club good.

Ask by Welch John. in the United States
Feb 27,2025

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Netflix's service is a club good.

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Netflix's service is excludable (only subscribers can access it) but non‐rival (one person’s viewing does not diminish another’s viewing). This is the classic definition of a club good.

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Netflix's services are classified as a club good. Club goods are exclusive in nature and can be consumed by a limited number of users, which aligns perfectly with Netflix's subscription model—only paying members can access its content. This type of good offers the benefits of both exclusivity and non-rivalry; one person's enjoyment of a show doesn’t diminish another's ability to enjoy it! Understanding club goods can be beneficial for other subscription-based services too. By identifying how they can leverage exclusivity, these businesses can enhance user experiences while ensuring sustainable revenue. Think of Spotify, Amazon Prime, and even gym memberships—these systems thrive on the same principles of limited access that Netflix does!

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