Warner fights piracy with pricing – about time

13 11 2007

Finally, after all the exhausting efforts to address piracy with RIAA/MPAA lawsuits and trials. Warner Home Video gets it by applying the vehicle that challenges the main equation of profit – pricing.

For months now we here @ EZ Duplication have been advocating this simple process. Never was sure why nobody just went ahead with it.

The question of unfair pricing was brought too light by numerous bloggers and forums. And all that was really being said was consumers wanted an alternative. $40.00 vs pirated, but if the title was dropped to say $10 -$15 or in this case lower, consumers would exercise their power and show support for such efforts.

The price differential has effected many in building their home libraries. And obviously the effect of “slow” sales has gotten the attention of content makers. The sliding scale of lower price with increase sales is business 101. The trick is finding the optimum point.

Movie houses like Warner have come to their senses for the benefit of all. With the Christmas season upon us, efforts had to be made at winning back customers. Each effort made in promoting this new Hi-Def production has been met with stumbling blocks, mainly Blu-Ray or HD DVD. Manufactures have aided this solution by finally delivering on “dual” format devices which help increase the sales of Hi-Def screens. Now its the movie house’s turn too supplement this effort.

The initial fear of rampit pirates can be tapered by the limited availability and high price of actual Hi-Def disc’s. CMC and Ritek the two largest OEM manufactures still are not committed or convinced which side to support hence they have no plans to restructure their production facilities.

What must not be overlooked, the pricing effort is focused on China. Somebody had to make a move not because of China’s export strength and world’s demand for cheaper products. China has already said they plan on introducing a NEW Hi-Def format. Which should challenge the name brands on price, a production war they (China) can win. Phillips has also re-entered the picture by announcing their effort to enforce patent rights on China an stop the flow of products too the US and European markets.

Lets recap that, a Japanese company that has formed a cartel of media giants is going to stop the flow of goods from China to the rest of world because they don’t have proper licenses. Not to mention the fact this cartel would never issue such a license, China has no intention of applying because it’s a Japanese cartel. This goes deeper than just DVDs. China will also benefit from the education of not allowing single order line items on containers. You WILL get fries and a shake with that order.

Hopefully this new pricing scheme from Warner will not only be directed at China. The other houses and content makers should take note of the potential new consumers that have been sitting on the sidelines. In this digital age, the new home entertainment center has a library, making it affordable is half the battle.

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