Dean Singleton: Please Explain How Charging For Something Magically Gives It Value
from the it-doesn't dept
Mathew Ingram points us to a ridiculous quote by MediaNews CEO, Dean Singleton, who also happens to be the Chairman of the Associated Press, talking up his decision to make one of his papers start charging for online news, claiming that charging magically imparts value:
"When you give it away for free it has no value. When you begin charging for it it has some value."That's wrong on both counts, and you would think that a major American media CEO would understand the difference between price and value. It's a bit scary that he seems to think that putting a price on something automatically gives it value. Unfortunately, he may have to learn that lesson the hard way. I could say that the blank pad on my desk has a price of $10,000. But that's meaningless, because no one would value it that high. The price you put on something is entirely independent of the value that buyers have for it. If the price you put on it is lower than the value they get from it, then they may decide to buy. But that value isn't created by the price.