From: "Alex F" <alexf@iss.net>
Date: Fri, 26 Jul 1996 02:14:58 +0800
To: jim bell <jimbell@pacifier.com>
Subject: Re: Digital Watermarks (long, getting off-topic)
Message-ID: <199607251447.KAA02494@phoenix.iss.net>
MIME-Version: 1.0
Content-Type: text/plain



> >>Isn't it odd that when music is sold, CD's are MORE expensive than cassette 
> >>tapes, even though you _know_ that the manufacturing cost of CD's is less?
> >
> >CDs sell for more because buyers decided that they wanted a wider range of
> >titles with shallower sales (hence higher unit costs) rather than a narrower

> I'm afraid that quantitatively, this is utter nonsense.  
> 
> A relevant data point is the fact that for about $1000, anybody can have 
> 1000 copies of a custom CDROM manufactured.  That, by music industry 
The real; answer to all of these points is too simple.  

"Because they can"

A lot has to do with percieved value.  If consumers would have 
thought that the prices were way too high, then the market would have 
dictated a lower cost eventually.  I think that the price of CDs vs 
tapes is more a marketing issue than a technical one....

Alex F
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Alex F    alexf@iss.net
Marketing Specialist
Internet Security Systems
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