Tuesday, June 22, 2010

Supply And Demand In a World With Competition

When you price your product above what consumers feel is reasonable, they will stop buying it (movie revenues and legit DVD sales). When a competitor that looks legitimate comes out with a lower priced source for your product, they will use them instead of you as their provider. If you continue to refuse to use a reasonable pricing model and refuse to adapt to the changes in your industry (streaming content, home delivery), you will end up with news items like: Overseas mob-run websites allow you to stream pirated movies to your television for cheap.

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