Malaysia Plans To Cut Disc Prices To Curb Piracy

from the who-cares-about-market-economics dept

Malaysia has an interesting strategy for combating CD and DVD piracy. They’re going to start controlling the pricing of all movie, music, and software offerings, and will set the prices so low as to be competitive with what the pirates are selling. This is an interesting strategy, which basically ignores all free-market economic thought, and forces all such content providers to agree to the low prices the government sets. As you might imagine, those who sell legitimate copies are not at all happy. As one of them says: “It’s like asking luxury goods makers to reduce prices because there are so many fakes out there.” I agree that this is a bad plan. Companies should be allowed to charge whatever they want – and then consumers can make the decision for themselves. If the prices are too high, then not enough people will buy, and the producer should be forced to drop the price thanks to the market. Controlled pricing takes away the efficiency of the real market – and suddenly puts them in the pricing business, when they have no idea what the proper price for an item is. While I think it does make smart strategic sense for companies, themselves, to offer a price that is close to the pirated price, that doesn’t mean that they should be forced to do so.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Malaysia Plans To Cut Disc Prices To Curb Piracy”

Subscribe: RSS Leave a comment
Anonymous Coward says:

Controlled pricing

In other markets, historically, price controls create a blackmarket – this is the first time I’ve ever heard of price controls created to *kill* a black market.

I have to say, I’m surprised by your stance – you’re always railing about how the industry “doesn’t get” customers. Here a gov’t forces them to “listen to their customers” (or at least acknowledge what they are doing, albeit for their own reasons, ie. cut down on black market crimes and regain lost tax money from black market sales). Maybe that’s just an indication of how far out of whack the industry is.

Can’t wait to see if this actually works.

anonymous wimp says:

Re: Controlled pricing

I don’t think this will actually work. what will happen is the content providers will not want to supply at such a low price and this will lead to a shortage in supply (or no supply) in the product.

There was an example of this in Santa Monica, CA (or some SoCal city). What the city gov did was, they decided it was unfair for ATM to charge people from other banks the 2 dollar fee and banned the practice. Banks answered back by not letting people from other banks use their machines for cash.

If the government forces someone to sell at below cost, it may make more sense to not serve that market at all.

Joe Schmoe says:

Dog catcher wagging the tail wagging the dog...

The ultimate intention is in good faith, though not necessarily an appropriate attempt [on the part of the gubba’ment] to do something that the industry itself should have the intelligence to do…

A cooperative approach of both parties (competitive pricing + punishment for infractors) would be better and more fair…

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...