A. Explain why Netflix is able to profitably release movies for free at home instead of releasing in theaters first for higher a price before releasing at home. Why doesn't this model work for all movie production companies? B. Recently more firms have adopted the Netflix model. For example, Warner Brothers announced they would release all movies on HBO Max at home at the same time they are released in theaters in 2021. Who benefits from this change? Who is made worse off from this change? Do you think society is better or worse off from this change?

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