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David! · 12-01-2010, 03:56 PM

Pricing is an art. You have to understand your consumer and be very close to what their perceived value is. Look at what happened to Blockbuster; at one point they were making a killing with their $30/month membership that allowed you to rent 2 movies at a time in their brick and mortar store. Then came along Netflix and then Redbox. We all know the rest.

Piracy is also an issue with pricing for virtual goods. How easy is it to obtain pirate content. Netflix seems to have found his pricing point for streaming content at $7.99, the problem I see with it is that it lacks most latest releases and does not offer the extra features of a DVD like subtitles and bonus content. From what I heard, Netflix is working with large studios to remedy this, and I think their new price point will probably be a couple of dollars more.

Now, with porn; we all know how easy it is to get free porn, so I think that the days of charging $30/$40 for content are coming to an end, except maybe for some very specific hard to find niche. I think that a program who offers quality sites with quality content at the sub $10 mark will do very well. If someone has to spend less than $10 a month, then they will be more likely to pay for it rather than hunt for free porn.

Education is also key. True or somewhat true; a lot of people get their computer infected while looking for pirated content, lately I have seen a lot of people who are seriously considering stopping to look for free stuff. Now the hardcore content pirate will probably not care and will continue, but we are about to see a shift in online habits for the mainstream user when it comes to looking for free stuff. And those who can offer the content at a price that the mainstream guys think is acceptable will be the leader of the new wave...

12-01-2010, 03:56 PM
David! By the wrath of Agamemnon Industry Role: Join Date: Apr 2004 Location: Miami Posts: 6,501	Pricing is an art. You have to understand your consumer and be very close to what their perceived value is. Look at what happened to Blockbuster; at one point they were making a killing with their $30/month membership that allowed you to rent 2 movies at a time in their brick and mortar store. Then came along Netflix and then Redbox. We all know the rest. Piracy is also an issue with pricing for virtual goods. How easy is it to obtain pirate content. Netflix seems to have found his pricing point for streaming content at $7.99, the problem I see with it is that it lacks most latest releases and does not offer the extra features of a DVD like subtitles and bonus content. From what I heard, Netflix is working with large studios to remedy this, and I think their new price point will probably be a couple of dollars more. Now, with porn; we all know how easy it is to get free porn, so I think that the days of charging $30/$40 for content are coming to an end, except maybe for some very specific hard to find niche. I think that a program who offers quality sites with quality content at the sub $10 mark will do very well. If someone has to spend less than $10 a month, then they will be more likely to pay for it rather than hunt for free porn. Education is also key. True or somewhat true; a lot of people get their computer infected while looking for pirated content, lately I have seen a lot of people who are seriously considering stopping to look for free stuff. Now the hardcore content pirate will probably not care and will continue, but we are about to see a shift in online habits for the mainstream user when it comes to looking for free stuff. And those who can offer the content at a price that the mainstream guys think is acceptable will be the leader of the new wave... __________________ .