Linked by Thom Holwerda on Mon 14th Mar 2011 23:22 UTC
In the News "A major new report from a consortium of academic researchers concludes that media piracy can't be stopped through 'three strikes' Internet disconnections, Web censorship, more police powers, higher statutory damages, or tougher criminal penalties. That's because the piracy of movies, music, video games, and software is 'better described as a global pricing problem'. And the only way to solve it is by changing the price."
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RE: generation 'entitlement'
by malxau on Tue 15th Mar 2011 07:51 UTC in reply to "generation 'entitlement'"
malxau
Member since:
2005-12-04

So what... a ferrari sports car is ten times more expensive in poor countries relative to income. Does that mean that the ferrari is incorrectly priced?

Screw this line of reasoning that you should be entitled to buy stuff at the price point you can afford. If you can't afford it, you can't afford it. End of story.


The difference between Ferrari and IP is that in the former case marginal costs (the cost to build the car) is high. Selling it cheaply means making a loss. In the case of IP, marginal costs are low, fixed costs are high. Selling it cheaply means revenue for the creators - revenue that would not otherwise exist. This argument isn't saying people should get whatever they want, whenever they want, for whatever they want - it's saying that producers are leaving money on the table by not selling products in a significant fraction of the world.

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