Who should be allowed to set digital retail prices for consumers?

Who should be allowed to set digital retail prices for consumers?

  • Digital Retailers (Itunes, Amazon, GooglePlay etc...)

    Votes: 8 88.9%
  • Digital Content holders (movie studios, music labels, book publishers etc...)

    Votes: 1 11.1%

  • Total voters
    9

EbookReader

macrumors 65816
Original poster
Apr 3, 2012
1,190
1
With physical products, the one who set the retail prices are the physical retailers (Target, Wal-Mart, Best Buy, Kroger, Amazon etc....).

With digital products, who should be allowed to set digital retail prices for consumers?
 

EbookReader

macrumors 65816
Original poster
Apr 3, 2012
1,190
1
The DOJ lawsuit versus Apple will have a big effect on the future of digital retail pricing.

http://news.cnet.com/8301-13579_3-57586765-37/apple-and-the-doj-face-off-over-e-book-prices-faq/

The Justice Department isn't asking for monetary damages but wants Apple to admit wrongdoing and change its procedures to make sure that wrongdoing doesn't happen again. The publishers already have ended their pacts with Apple as part of their settlements, but Apple could pursue similar deals in its other businesses, such as music and TV. If the antitrust case sets a precedent that Apple's business dealings are illegal, it could have a sort of chilling effect on its other operations.

This is the model they want to use throughout their ecosystem," James Grimmelmann, a professor at New York Law School. "They don't want to have their fixed commission model undermined when it comes to apps, movies, and music.... To them it's a much larger issue than books."
Content holders setting the price: each digital retailers are guaranteed 30% cut. Same price at every retailers.

Retailers setting the price: consumers will see sales competition. Discounts will often take place in a wholesale model.
 

decafjava

macrumors 68040
Feb 7, 2011
3,271
2,751
Geneva
I'm really not sure what to answer...of course I want what's best for me a consumer but I am not informed enough to answer your poll.
 

EbookReader

macrumors 65816
Original poster
Apr 3, 2012
1,190
1
I'm really not sure what to answer...of course I want what's best for me a consumer but I am not informed enough to answer your poll.
Here's the current price setters:


Digital music: the digital retailers set the price

Digital movies: the digital retailers set the price

Digital books: the digital retailers set the price, then it was the content holders through price fixing, now it's the digital retailers again after the 5 Big Publishers settled with the DOJ and the EU.

Digital video games: the digital retailers set the price

Mobile apps: the content holders set the price


Digital Retailers are the like of Apple Itunes, Google Play, Amazon, Sony, Nook, Kobo, Samsung etc...who are selling digital goods like music, movies, gaming, books, apps etc..

Basically, do you want the like of 20th Century Fox, Warner Bros., Paramount, Walt Disney, Sony and Universal to set the retail price of a movie that you buy

or

do you want these major movie studios to sell the digital movies to digital retailers at wholesales, who then set the price for consumers?

In the physical media world, the movie studios sell their DVD/Blu-ray to retailers (Wal-Mart, Target, Best Buy etc...) at wholesale prices. These retailers will then determine their prices to the consumers.
 
Last edited:

ucfgrad93

macrumors P6
Aug 17, 2007
17,614
8,265
Colorado
The digital retailer. They are the ones that are hosting the files, creating the transaction, customer service if something is wrong, etc.
 

decafjava

macrumors 68040
Feb 7, 2011
3,271
2,751
Geneva
Well, going by the arguments put forth on this thread, I'd have to go with the retailers then.