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Fountainhead
Premium
join:2003-10-25
New York, NY
kudos:1
reply to 88615298

Re: I would feel sorry for Hollywood, but.......

They sell product for the price that the market can bear.

Once again.. it's called free enterprise.

If the price is too high for you, then don't buy it.

This is your right.

OR..

You can fly to China, buy it, and bring it back.
--
It's all part of my rock and roll fantasy


smajchrz

join:2003-10-11
Chantilly, VA

1 recommendation

Now there is an interesting statement. "They sell the product for the price the market can bear", yet they complain about loosing billions of dollars to piracy.

This might lead one to believe that they have set the price too high for the market and hence people have turned to "piracy" to get a product that they could not otherwise afford.

Going further, if they were to lower the price one might expect the rate of "piracy" to decrease. At some point the price vs. profit would reach equilibrium where it would not be profitable to lower it any more. This may in fact still leave a certain number of people "pirating" the products. But since they will know that there is nothing else they can do to gain more sales, are the "pirated" copies really lost sales? No they are not.

They really have a choice here 1) essentially gouge the consumer to maximize profits in the short run alienating consumers and possibly increasing the instances of piracy, or 2) lower prices to a sustainable level that will not alienate consumers which likely would also have the added benefit of curbing piracy to some extent.

This is not to say that pirating anything is lawful or legal in anyway. But it does show the greed and thirst for power that the MPAA has. Every company is entitled to a fair profit, just don't abuse your consumers.

wentlanc
You Can't Fix Dumb..

join:2003-07-30
Maineville, OH
reply to Fountainhead
Finally something we can all agree on. Piracy is a result of an unbearable market. They can control priacy by controlling the price of the movies.

Why are we still paying the same prices for 20 year old technology, although production costs have gone down? And now with the next tech advance (blueray), they are looking to jack another price increase from the average customer. You bet your ass that DVD prices will not drop as a result.

puritan