Seth Godin Asks “How Much For Digital”
Two weeks ago marketing guru Seth Godin gave advice to the industry with his essay "Music Lessons" drawing praise for our readers. (read more and vote in our poll here). Now Godin takes on pricing of new digital film rentals and the lessons apply to the music industry as well.
"…In the case of online rentals, all of these intermediate costs immediately disappear. Gone. So, why try to mimic the current model when it comes to pricing if the costs are mostly gone?…I don’t think Free is always the answer, but I do think the studios are about to make a mistake of RIAA proportions. I’d charge fifty cents for an online rental. It would immediately hammer the rental stores…but would instantly teach people a new habit...
Then, once the new habit is set and you’ve earned permission, sure, charge more for new movies and for blockbusters…
At fifty cents a rental, all desire for piracy goes out the window,
replaced by convenience, ease of use and a clear conscience. More
important, entire new services show up, habits are built and the
studios end up with a direct relationship with consumers…" (Seth’s Blog)
Great lessons for the music industry too. Or is it too late?
I don’t think it’s too late for the film studios, but I don’t think they are able to look past their own greed and try something like this either.
It’s possible. It’s sort of like what Famous Players did in our town. They showed up, boasting amazingly cheap theatre tickets, causing the local theatres to go out of business. Then, they jacked the price higher than the locals charged.
It might be a good idea except for that last bit. I don’t want to see a short savings term until everyone backs off and then higher prices than ever before.