Quote:
Originally Posted by gollu
I think there's something really wrong with your model. You can't measure a whole-lot sale (like a cable TV) as a on demand entertainment (like books, cinema movies, games). You can't say something should be $2 when its cost of production was 5 dollars (per expected sales).
Nobody makes you buy things, but looking to get those prices is too high an expectation.
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Well, actually I can - it is my model. What is yours?
I come from the point that there are many ways of entertainment and they all compete for my time and money. I cannot enjoy a movie 10 times more
only because it is 10 times more expensive compared to a documentary on the TV, can I?
Plus as I am the customer and I am awlays right... or something. :-)
But if you want to go down the road of the pricing, I can make this argument:
You make a movie and after the cinema run you can either put it on DVD or you may skip the DVD and make it available for streaming for 1.00 a pop.
The people in the world that will be able to afford my pricing model are at least 1 bln (I conservatively take only the 75% of the populaiton of the developed economies).
If 1% of those choose to watch the movie 1 time (and if it is a really good movie you may have 5-10% or even more!) you can make a quick 10mln and almost all of it is pure profit. This is after the movie has payed back already several times in the teather runs.
The audience for the average TV shows
only in USA is like 5mln ppl. That is 2.5 mln per episode - not bad at all for one country. Let me remind you - one can actually get the said TV show compeltely for free by recording it AND skipping all the commercials. So 2.5 mln is really good.
There is this other thing - the budgets for the movies are too high anyway. Why on Earth an actor should make 10s of mln for a single movie?! Is his work more valuable than a heart surgeon or the president of USA? Is it more difficult? I am sure it is not. So no need to blow millions for the actors, directors, etc.
If all people in the entertainment industry get more fair salaries, prices of their products can easily go down.
I know this may sound a bit socialistic, but that's not bad, as long as it is not too much.
