Monday, May 28, 2007

Lowering price to stop piracy

I remember when VCD just came out, the price for a movie on VCD was around S$20, while pirated VCD is selling at S$5. With such a great different, who will want to buy the original?

But after some time when DVD became popular, the price of a VCD movie drop to around S$10-$12, while the pirated VCD is selling at the old price of S$5. When that happen, everyone goes for the original.

It just prove that people like the original, and it is because the price different is too great is justify purchase of original. (from an economic point of view, not ethic)

People are willing to fork out twice the amount to support original, and gain better peace of mind, quality of goods. But at 4 times the price, it is easy to change the mind.

So rather than spending so much money to fight piracy, wouldn't it be easier for companies just to lower the price of its product. It will also bring in more sales.

posted by Wui-Ping @ 2:25 PM Comments: 0