Here is the original question :
The ESPN cable TV network runs a major sports information site at www.espn.com. Most of the content is free, but ESPN has a premium membership (see its "Insider") available for a monthly or an annual fee. Similar, but fee-free, sports content can be found at the Web sites of CNN Sports Illustrated, sportsillustrated.cnn.com, and CBS Sports Line,www.cbssports.com. Since ESPN has put a price tag on some of its sports content, it implies that the utility of a premium membership cannot be found at a no-fee site and is therefore worth the price. Is this the case? Use the utility-maximization rule to justify your subscribing or not subscribing to the premium membership.
Which product will yield maximum utility? Let say if one content is available for free and the other is priced but a utility of that cannot be found anywhere else. Applying the law of Utility-maximization I get this ( Marginal utility of fee-free content)/(price of fee-free content) ≠ ( Marginal utility of premium content)/(price of premium content )
So , I am thinking regardless of the price of a premium content the fee-free content’s marginal utility over price will never equal the marginal utility of premium content over the price of premium membership. So, why will one buy a premium product? Am I correct on this?