CompuServe Messages

#What Price Should it Be?

    25-Dec-92 12:35:36
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. [continued}