Friday, October 15, 2004

The Charging Of Digitally Distributed Products

GameSpy usually sells D2D games for $00.04 less than Amazon. Like Commandos 3 is $14.95 on D2D and $14.99 on

And Sum 41's new album Chuck is £9.99 on, but £7.99 on iTunes.

So digitally distributed items are cheaper, but I think retailers a missing the point. And that is, with a server setup, wither it's one person or one thousand people that buy your product the distribution costs are the same and the number of companies taking a percentage of the sale is significantly less.
Therefor you can offer customers huge bargains and still make more money than you would selling at retail. And yet the prices stay roughly as they where!

Maybe digitally distributed products are having a slow start, but it's the future.