He cited statistics that showed how much people are willing to pay for media content: $5 an hour to watch movies, 75 cents an hour reading books, magazines, and newspapers and 25 cents for every hour of Internet use.
There's an awfully big difference between "willing to pay" and "will actually pay".
Is, but any chance, the cost of going to the cinema in the US somewhere around $5 per hour? Trying to transfer the willingness to pay some amount for that experience to paying the same amount for watching something on a computer screen is a nice piece of wishful thinking.
They'd have to charge more in line with pay per view (which is what iTunes does) and could probably do nicely with that. It would make cable companies mad, but hey they already are.
I'm sure he's just calculating (average media cost) / (average time spent consuming media). I'm sure he's well aware of the flaws in his argument -- that watching a movie in the theater is not the same as watching at home and that consumer pricing is highly irrational -- since his company relies on these facts to extract the maximum amount from each consumer.
Comments
He cited statistics that showed how much people are willing to pay for media content: $5 an hour to watch movies, 75 cents an hour reading books, magazines, and newspapers and 25 cents for every hour of Internet use.
There's an awfully big difference between "willing to pay" and "will actually pay".
What statistics are he citing, anyway?
Is, but any chance, the cost of going to the cinema in the US somewhere around $5 per hour? Trying to transfer the willingness to pay some amount for that experience to paying the same amount for watching something on a computer screen is a nice piece of wishful thinking.
They'd have to charge more in line with pay per view (which is what iTunes does) and could probably do nicely with that. It would make cable companies mad, but hey they already are.
I'm sure he's just calculating (average media cost) / (average time spent consuming media). I'm sure he's well aware of the flaws in his argument -- that watching a movie in the theater is not the same as watching at home and that consumer pricing is highly irrational -- since his company relies on these facts to extract the maximum amount from each consumer.