[Andrew H.]

If you really stuck to these prices, all you will be doing is watching TV and reading library books.

And while it makes some sense to consider how much you are spending for your entertainment budget, using the figures from an advertising supported medium to figure out how much is "fair" for a non-advertising supported medium won't work.

TV is cheap because millions of people watch the advertisements. OTA TV with some HD content in the US is free, for that matter. Most books that are considered "successful" sell a few tens of thousands of copies. With no advertising to support them, they are going to have to charge more than 50c/hr, which isn't possible at your pricing levels unless the author works for free - and maybe not even then.

And your music prices are just stupidly low - there is no entertainment for you if no one gets paid.

The idea that making prices infinitely low means that an infinity of people will buy the product seems to be the root of your delusion. But it's not true - as you mentioned, a successful TV show in the US might have 2.5 million viewers. Yet despite the fact that this shows is free, more than 99% of the US population somehow managed to avoid watching it.

At some point, of course, people are price sensitive, and there is usually an equilibrium point (sometimes several) at which the supply/demand curve will be most efficient. But, as I mentioned above, demand isn't infinite - if Ken Follett dropped the ebook price on "Fall of Giants" to $2/book, he wouldn't get 10x more readers since the number of people interested in reading the book at all (even if it were free) is limited.

Again, you can choose how you want to spend your money. But it's ludicrous to assume infinite demand or to ignore production costs such as, oh, paying the author.