How Much To Charge For Digital Downloads?

Just recently announced is the iTunes downloadable movie rentals program: $3 bucks for standard definition and a few bucks more for high definition. This sounds reasonable enough if you consider it costs about the same as going to Blockbuster (given you still drive to video stores for rentals).

But hold the phone.

Say Blockbuster gets its DVDs for $15 a piece. If they rent the movie 30-40 times, their net costs runs about 35 cents a movie. Maybe 50 cents if you count the cost of hiring those depressed workers, advertising, property taxes, etc.

If everything is digital, all you got is broadband to cover. No discs. No building rentals. Nada. If anything, the iTunes store should be charging 50 cents a movie. Of course "free" is always better (Yes, I'm speaking about the pirates), but at 50 cents a movie, there is no longer that incentive to try and cheat the system. At 50 cents, movie studios can easily build a fanbase, introduce marketable collectible goods, and give their customers some extra needed room to generate a good conscience.

So whoever is in charge of setting the prices, heed my words: Don't make the same mistake as the recording industry. Build up good consumer habits by not being greedy for once and you might just end up with a profitable garden of happy Internetopians.