November 21, 2005

Surprise, Surprise [12:42 pm]

Sprint Brings Music Direct to Cellphones, But Price Is Too High [pdf]

Sprint says its higher price is justified by the convenience factor, the ability to buy a song on the go, when the impulse strikes. The company compares this to paying more than usual for milk at an all-night convenience store, or for hot dogs at a ballpark. Also, Sprint contends, there are many people who find PC-based music stores too hard to use, and they will be willing to pay more for something simpler.

I believe something else is at work here: a lethal combination of two industries many consumers believe typically charge too much. One is the bumbling record industry, which has been seeking to raise prices in the fledgling legal downloading market even as it continues to bleed from free, illegal downloading. The other is the cellphone carriers, or, as I like to call them, “the Soviet ministries,” which too often treat their customers as captive and refuse to allow open competition for services they offer over their networks.

Via Slashdot’s Costly Music Store Coming to Cellphones

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