- producers try to reduce costs
- producers ignore customer demands as long as they are able to do it. In particular when the customer has no option because competitors are following the same cost-saving approach.
- customers give up and start watching second-best options, and get used to them (tragedy of the commons)
- there are synergy effects which allow producers to get away with sub optimal options: I will use my Amazon Prime account to watch videos, even if I am not entirely happy with the offer, because I am already paying for Prime for delivery.
- the world is complicated, and consumers have little time and power, while producers can spend time writing 30 pages contracts. The only way to balance power here is to associate, but citizens are quite bad at it. The EU is an association, and I am happy that they are taking into account the consumer's interests.
I wonder when will this fallacy of "the market works to fulfill the interests of the customers" die out ...
This is purely an exercise in the EU seeing that it can control foreign companies using GDPR and thinking "hey, why don't we use this to force companies to give us money".
Also:
> I wonder when will this fallacy of "the market works to fulfill the interests of the customers" die out ...
Just because it's flawed, doesn't mean it isn't mostly true. The market is far from perfect but that doesn't mean it doesn't still fulfil customer needs. It just doesn't fulfil all of them, fulfils them in an inoptimal way, and so on.
Culture is not just about satisfying demands, it's also about giving people the opportunity to stumble across things they weren't even looking for, and so enrich themselves in unexpected ways. As a teenager I had no particular desire to go looking for ancient harpsichord music, difficult jazz, sombre poetry, magnificent choral worship or even five-minute recordings of nothing but church bells ringing. But I found them just by twisting the radio dial late at night and discovering things that would never get airtime in a purely commercial setting. The fact that these things are paid for by a "tax" that many are still strongly opposed to, is something I would strongly support in a more modern media context.
All of these things always sound like a great idea when you have good people in government. However almost everyone seem to forget that bad people do get into government too.
Having governments dictate or force quotas and determining content always ends up biting the people in the long run.