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Zero Marginal Cost Products Explained

Geoff Riley

18th April 2025

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In this video, we look at a concept that’s super relevant in today’s digital economy: Zero Marginal Cost Products – what they are, how they’re priced, and why they raise important questions for economic efficiency. From Spotify and Netflix to Google Search and even MOOCs like Khan Academy—these are products that cost virtually nothing to distribute to one more user. But if they cost nothing to share... how do producers make money? And how do we make sure everyone who needs them gets access?

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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