John Blossom has a reality check on pricing of premium content, something which I have lamented on in the past: “‘What the market will bear’ seems to be the operative heuristic in setting many premium content prices, akin to seeing how many people line up for World Series tickets at $250 a pop on the primary market…”
“Many major content providers servicing corporate accounts look at what they need to run a profit in a given year, then at the number of accounts that they are likely to service, and work from this ‘top down’ position to a pricing structure that seems reasonable to what they assume is a relatively captive audience – the public utility approach, you might call this.”
A must read…
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