#What Price Should it Be?
25-Dec-92 12:35:36
Sb: #34883-#What Price Should it Be?
Fm: Rich Bowers/OPA 71333,1114
To: Rich Bowers/OPA 71333,1114
[continued from previous message]
So the problem of pricing consists of (at least) 2 major components. One,
it certainly can be argued that some publishers think to highly of the
value of their content. Two, publishers make their money from a variety of
sources. And that business model dictates, to a large extent, how pricing
must be done, to accommodate development, production, marketing and profit.
That's not to say there aren't better business models from which publishers
could draw. In fact, that is one of the points OPa and mysfle advocate.
The movie industry has learned to profit from many sources: the original
release, merchandise licensing, sound tracks, foreign rights and video
rental/sales. Some publishers, with some products, could take adavantage
of these techniques, if they re-examined their goals and methods.
I also want it all, and I also see CDROM (and other electronic media) as a
way to meet some very progressive social goals, making more info available
to more people in a variety of ways, including lower prices. But I don't
think it's fair to propose that CDROM publishers with high priced products
are essentially ripping off the consumer. I think it's fairer to say they
are in a very steep learning curve, and as they learn to modify their
production and revenue models, our goals as consumers will be realized.
I think it's relevant that every new medium (just as every new technology)
begins at a very high price point. From initial print products (when only
royalty could afford books), to initial video releases (when only renatl
business could afford a movie on tape), producers and consumers have had to
dance together for awhile before the producers could understand the most
effective marketing strategy, and consumers could appreciate the value of
the product. And prices work themselves toward a compromise.
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