2024-02-24 17:11:40
Piracy does make a difference economics/movies/news

Ever wondered what is the point in piracy (besides providing free access to things that are too expensive/late/unavailable on the market?) They teach corporations the new rules. Reuters reports: “Hollywood studio Warner Bros. is taking on the pirates in China’s film market, using lightning-fast home video release and low prices to beat DVD counterfeiters at their own game.

Warner’s China film-making joint venture released its first picture, a low-budget film called “Crazy Stone”, in cinemas on June 30, then followed with a DVD version selling for as little as 10 yuan ($1.25) just 12 days later.”

This is what it means not to be in a monopol position and exposed to competition. But at least it has turned out, that $1.25 is still a price worth going after. Talking about a nearly pure information good this should be natural, shouldn’t it.

Pingback warsystems » Price elasticity of online movie demand — September 18, 2006 @ 3:53 pm

[…] compare this to Netflix’s 8 to 10 movies / $20 per month and the $15 /retail DVD and you will see why the majority of users won’t buy on this price. And talking about prices, in China, where there is no real government pressure on pirates, the prices are even lower, […]

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