Sunday, October 15, 2006

Digital or physical? Lease or buy?

In reading about the new debates regarding digital and physical DVD pricing, which is the same debate over music, I think back to cars. When the car lease was introduced, how did car rental and car sales businesses react? Were there lawsuits? Concerns over undercutting? I get the sense now that this debate is largely settled in the car world. Granted, at least all of the product was the same in these instances -- all physical. But in some ways it is similar, as digital downloads tend to mean (at least today) temporary access.

Target has complained that they do not want to be priced out of the market. But there have been price differences between permanent and temporary rights. Prehaps we just need to make sure that what is "permanent" is truly permanent, and has advantages? That is what the CD market has attempted to do. (My problem, in the CD world, is the "added benefits" aren't that "special" to me. But I do like the security of owning the CD. . .but I'm not as young as many music buyers these days.)

If I knew the solution I'd probably be doing something else. But perhaps we need to examine other market shifts rather than focusing on how everything now is new again. . .

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