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Old September 19th, 2008, 02:44 AM
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Jazzepi Jazzepi is offline
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Default Re: You can't complain that this game is costly

IMO the record labels created incredible pressure outwards away from their products by producing an artificially high price for a CD. Even though the price of minting and production had fallen, the price of the CD stays the same. Normally when the cost to the producer goes down, the price of the product goes down in turn, since there's a competitive advantage at selling for less than your competitors in the market place.

But since they were fixing prices and creating a non-competitive enviroment...

http://www.usatoday.com/life/music/n...ttlement_x.htm

... the large labels charged a relatively outrageous price for CDs despite the lowering costs.

The high price turns people off from buying the product, but since there was no alternative, there was no choice. The moment MP3s hit the internet with Limewire, bearshare, Napster, there was suddenly a much cheaper (IE Free) choice for getting music. It's not just that you could download stuff for free, it's the fact that the music industry did such a terrific job of pushing people away from their products by installing DRM on CDs...

http://en.wikipedia.org/wiki/2005_So...ection_scandal

... and charging way too much for a product that should cost a lot less.

The way I see it, the rise of the internet pirate is a direct response to the CD price fixing cartel.

Jazzepi
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