Many movie studios stagger the release of movies - first in theaters, next streaming and cable TV, and then free-to-air TV. What type of pricing policy are they applying?

Question

Quizplus · Accepted Answer

This is an example of indirect segment discrimination, where different versions or timings of a product are offered at different prices to indirectly segment the market and capture more consumer surplus. By staggering the release across different platforms, movie studios are able to charge different prices to different groups of consumers based on their willingness to pay for earlier access.

Many Movie Studios Stagger the Release of Movies - First