The Price Is Not Right

Malaysian government tries to help it’s CD and DVD industries help themselves with some tough love:

This week, Deputy Domestic Trade and Consumer Affairs Minister Datuk S Subramaniam told buyers to quit spending – temporarily, at least – to force the industry to reduce prices.

Subramaniam’s statement, reported by the New Straits Times, apparently followed requests by Kuala Lumpur that “industry players” reduce “CD and VCD” prices – a demand rejected by the music and video business.

Ironically, the government made the request in order to help the industry: it offered the move as a solution to escalating music and movie piracy.

“There are some new local movie releases that are priced at MYR10 ($2.64). The VCDs are affordable and not bootlegged by illegal manufacturers,” said Subramaniam. “Those priced at MYR30 ($7.91) and above are normally the ones that get pirated. This proves that the price factor is the main reason why consumers buy pirated CDs and VCDs.”

It’s a point oft-made by music and movie consumers, but this is the first time we’ve heard a national government come out and make this oh-so-obvious suggestion. Of course, music and movie companies won’t accept it, no matter from where the advices comes. As Subramainiam himself noted this week, they’ll continue to state that CD and DVD prices are justified by admin costs, R&D, production and artist royalties. [The Register]

The dynamic works everywhere with the force of law: find the right price and consumers prefer legit to pirated – pretty damn simple Hilary.