There are only companies that charge too much and don't have a clue.
This article at Techdirt shows that the pirates are not the problem, the companies are. If they would change their models of distribution they would end piracy and make more money at the same time.
One good point to note is that
digital content is best viewed as a service, not a product. As a service, you focus on providing continual value -- and people are paying for that future value (which is a scarce good prior to delivery), rather than an infinite good already created. There's value in paying for that future (scarce) service, and it trumps paying for an abundantly available good.
This is true. Digital products cannot be distributed and controlled like physical products. Corporations don't get this. They would rather shut down the entire Internet than make any changes to the way they do business. The article goes on to say that
the reason "piracy" is doing so well is that the "pirates are ahead not just on price, but on service." In fact, he noted that since DRM decreases the service value for customers, it also tends to increase piracy, rather than decrease it.
The data in the article goes on to show that when prices are reduced drastically, by as much as 75%, sales can increase by as much as 3000%! That's not a mistype. People copy digital content because the price is too high. If the price were reasonable, people would pay to get good copies. That has been shown in many studies.
The copyright industry won't acknowledge this because it means some loss of control for them, even though it could mean more money. The copyright industry is about power and control. Marketing music and movies is a means to attain that control. The war against so-called piracy is a war to protect profits, nothing more.
This article at Techdirt shows that the pirates are not the problem, the companies are. If they would change their models of distribution they would end piracy and make more money at the same time.
One good point to note is that
digital content is best viewed as a service, not a product. As a service, you focus on providing continual value -- and people are paying for that future value (which is a scarce good prior to delivery), rather than an infinite good already created. There's value in paying for that future (scarce) service, and it trumps paying for an abundantly available good.
This is true. Digital products cannot be distributed and controlled like physical products. Corporations don't get this. They would rather shut down the entire Internet than make any changes to the way they do business. The article goes on to say that
the reason "piracy" is doing so well is that the "pirates are ahead not just on price, but on service." In fact, he noted that since DRM decreases the service value for customers, it also tends to increase piracy, rather than decrease it.
The data in the article goes on to show that when prices are reduced drastically, by as much as 75%, sales can increase by as much as 3000%! That's not a mistype. People copy digital content because the price is too high. If the price were reasonable, people would pay to get good copies. That has been shown in many studies.
The copyright industry won't acknowledge this because it means some loss of control for them, even though it could mean more money. The copyright industry is about power and control. Marketing music and movies is a means to attain that control. The war against so-called piracy is a war to protect profits, nothing more.
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