Godin Gives it Away

Seth Godin wrote a who manifesto a few weeks ago about music that I haven't had enough time to read, but now he's got a few things to say about movies too. He think the studios are making a mistake of "RIAA proportions" by selling movie rentals for the same amount as they sell them at Blockbuster.

"...In the case of online rentals, all of these intermediate costs immediately disappear. Gone. So, why try to mimic the current model when it comes to pricing if the costs are mostly gone?

...I don't think Free is always the answer, but I do think the studios are about to make a mistake of RIAA proportions. I'd charge fifty cents for an online rental. It would immediately hammer the rental stores...but would instantly teach people a new habit...

Then, once the new habit is set and you've earned permission, sure, charge more for new movies and for blockbusters..."

Here we go again. Another Silicon Valley guy telling Hollywood how to sell their content when he has no stake. The reality is that online movies at any price or business model may be pushing a square peg in a round hole because of download speeds. So why dramatically undercut the current business model that pays the bills for something so totally unproven. It doesn't make any kind of business. The only people who NEED consumers to watch movies online are online people. Hollywood doesn't really have a movie distribution problem. DVD, VOD, and all the other windows, these things work fine for Hollywood. Why not sell a movie at 50 cents? Isn't it obvious? Because its worth more than that. If people are used to paying $4 for renting a movie, why should the price now be 50 cents?