On Fri, 18 Jun 2004 18:02:13 +0000, zoltan47 wrote:
> On Thu, 17 Jun 2004 23:28:55 -0400, Invid Fan <>
> wrote:
>
>>In article <>, wesley
>><> wrote:
>>
>>> On Thu, 17 Jun 2004 16:31:04 -0700, Richard wrote:
>>>
>>> > Just curious
>>>
>>> Probably nothing more complicated than that's how much people are
>>> willing to pay.
>>>
>>> I'm sure their financial gurus have put a certain amount of effort
>>> into projecting what price/volume mix produces the most profit for
>>> them. If sales meet their estimates, they'll keep that price. If sales
>>> are lower than expected, you'll probably see a more competitive
>>> pricing structure down the road.
>>>
>>You're being punished for not subscribing to HBO. A show I can watch for
>>"free" on CBS is going to have to have a cheaper price for me to buy it
>>then a show I can ONLY watch by getting the DVD. If many people decide
>>it's cheaper to get HBO then to buy these dvd sets, then all the better.
>
> But Star Trek was also for "free" (e.g., NG in syndication and DS9 on
> UPN). but those are more expensive the, oh say, the Buffy, the Vampire
> Slayer sets.
Again, we're back to the high business class, "Free Market Economics 101."
I'm free to charge $1 or $100 for my $10 widgit and you're free to buy it
or not buy it.
To the extent the Star Trek and HBO people have correctly predicted the
correct price point for their products, they'll sell a lot of DVDs and
smile on their way to the bank.
If they've guessed wrong, well, they're going to be stuck with a lot of
excess inventory unless they cut their price to move it. (There is also a
third possibility that they've grossly underestimated the consumer price
and sell out too quickly, essentially leaving money on the table.)
The consumer price for items such as DVDs and music CDs is not necessarily
set by the production costs for any one item.
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