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Sunday, December 17, 2006

What is the right price of content?

"People have come to believe that "you get what you pay for".
If you lowered the price of a movie, people would immediately infer from the low price that it's a crappy movie and they wouldn't go see it.
If you had different prices for movies, the $4 movies would have a lot less customers than they get anyway. The entertainment industry has to maintain a straight face and tell you that Gigli or Battlefield Earth are every bit as valuable as Wedding Crashers or Star Wars or nobody will go see them.

Now, the reason the music recording industry wants different prices has nothing to do with making a premium on the best songs. What they really want is a system they can manipulate to send signals about what songs are worth, and thus what songs you should buy. I assure you that when really bad songs come out, as long as they're new and the recording industry wants to promote those songs, they'll charge the full $2.49 or whatever it is to send a fake signal that the songs are better than they really are. It's the same reason we've had to put up with crappy radio for the last few decades: the music industry promotes what they want to promote, whether it's good or bad, and the main reason they want to promote something is because that's a bargaining chip they can use in their negotiations with artists."

But then, if you want to reach a big audience YOU HAVE to have low prices.

That is what P2P taught us.
The widest you want to reach an audience, the lower must be the price.
It doesn't really matter how low,it matters that IT IS LOWER than what the custumer expect it to be.

That is the secret of special offers, of replica goods and so on.
You give the same FOR LESS.
And sometimes MUCH LESS.

And if you cannot play on the price of the Item, you can play on the price of delivery.

That is why the Intenet is going to play a major role on the market, expecially on Virtual Products market not only as a delivery mean, but as a promotion tool.
It's the place where the customer has his place to rate this or that.


"After all, Content ultimately seeks Attention, and Attention ultimately prices Content. "

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