Quote:
Originally Posted by ZENRA
Economies of scale, of course.
But users are now accustomed to paying $15 or so to view all the content they want.
If anything, porn has been priced as a premium from the get-go and still is priced at a premium today. That doesn't mean we should never go above $29 a month, but what users expect to pay for a digital content service back then compared to now has most likely changed.
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No I totally disagree.
First, expectations in mainstream are WAY different than for a "vice" like porn. How people behave when it comes to Netflix or Amazon or Apple TV is NOT their watching/spending habits when it comes to porn.
But above all that it's this: perceived expectations. Lowering the price signals your product is Wal-Mart prices. I would rather keep the price high and give added value rather than sell a product people perceive as low-cost or worse, free.
The music industry - of which I was a part for fifteen years as a journalist - faced the same fate/doom. Back in 1999 when Napster first appeared. The major labels thought they defeated digital but 18 months later along came iTunes and the product the record companies were selling for $15 or higher - since you had to buy an entire CD, not individual songs - was suddenly reduced to $0.99. It took a decade for the labels to recover and ONLY by screwing artists via streaming services like Spotify.
So the moral to this story: keep your prices high, add as much value as you can (and hopefully more than your competitors) and market your ass off.