Comment Re:Its funny (Score 1) 387
That sounds to me pretty much like the Steam business model.
The amount of money Valve's got out of me by putting games on sale for 40%, 20% or even 10% of their normal sale price is ridiculous; most of them I wouldn't have bought if not for the sales. When digital media is concerned, once it is made there is no cost beyond server maintenance etc. If you have normal pricing most of the time the early adopters will pay and you will get normal sales numbers and make a moderate amount money. Lower the price later on and people will be more likely to pay and seeing as it's not the new hotness it can only drive interest. Have a sale at 10% normal cost and you maybe get 100x the number of normal sales, so 10x the normal income from the cheap-skates and impulse-buyers. I don't have a link to the actual stats, but from what I've read about the profit margins on steam sales, my figures are fairly conservative.
Of course games and movies aren't the same - you don't have quite the same "new hotness" factor with movies, so sales would have to be less extreme, but other than that it's pretty much the same and the lower price of movies compared to games would more than make up for it anyway.