High Definition :: HD DVD and Blu-ray

Re: $5 worth of music, $10 for movies...


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Wednesday, February 27, 2008
Member since:
January 2008
It's all supply-and-demand: like kucoloco noted, higher prices at the start and lower prices later. That way you get the "gotta have it despite the high price" people at the start and scoop up a bit less per unit on the more patient/thrifty buyers later.

If everyone stopped buying until the prices dropped, the record/film companies would be forced to lower their prices (within reason). Just like going to the football game and buying $8 beers - the prices stay that high because people buy them, and there's no incentive to drop the prices. If you make more money by selling less product for a higher price then there's no reason to drop your prices until later.
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