CDs vs. DVDs


Interesting piece in the Denver Post about how the pricing strategies of CDs and DVDs differ and what that says about the music and movie bizs' response to the threat of piracy, downloading, etc.

A snippet:

Not until 20 years after the introduction of the CD in the United States did a record label announce across-the-board price cuts that acknowledged consumer anger at paying $19 for one decent Justin Timberlake song. Universal will now drop prices on many CDs to below $10, a breaking point many buyers seem to accept.

In contrast, the movie studios saw the threat from pay-per-view cable and satellite in 1997, when DVDs first arrived here, and slashed prices immediately. DVDs started between $19 and $24; today hundreds of great titles are available in the $10 range. With "Pirates of the Caribbean" still taking in great business in theaters, a two-disc DVD version will arrive before Christmas for $18.

Whole thing here.

[Link via Frankin Harris]