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Perhaps this is the problem. Does content have inherently lower value now that it is abundant, and distributed for (nearly) free? If content providers charged
by tomkinstinch 15y ago
Perhaps this is the problem.
Does content have inherently lower value now that it is abundant, and distributed for (nearly) free?
If content providers charged say, (cost of bandwidth)+10%, for each item rather than arbitrary whole-dollar prices, they would certainly see more takers--and perhaps higher profit.
- chc 15y agoI don't think cost-based pricing is the answer. Cost-based pricing is almost never the answer unless you're a charity, and it creates some really perverse incentives for the producer (for example, if I'm running my web service as cost-plus, it's in my interest to buy gold-plated servers cooled by ice hauled in from Antarctica — 10% of that is a lot more than 10% of $200). I do think the value of entertainment has dropped as the supply has ballooned. The problem is basically just that they're stubborn as a mule and refuse to seriously compete in the market that exists today. They want to keep things the way they were, and if you ask for something else, they'd rather just take their ball and go home than negotiate. And I mean, that's their right, but when they do that, they are really the ones who are undermining their business model.
- tomkinstinch 15y agoQuite right about the perverse side of cost-plus pricing.