No blog for the week, as I was in Jakarta. Yes, they have internet access in the hotel room. Just that I was using dial-up and not in the mood to blog when I am there.
Was talking to someone about lifestyles in Singapore. He asked me how old I am, and whether I am married. When my reply about Singapore's increasing marriage age, and decreasing birth rate, he seem perplexed. And when I said that I might not want to get married and most likely not want to procreate, I think it is an idea that he never thought of before.
I explained that this happens in many cities in the world, where stressful working environment, coupled with high-standard of living has made many people focus more on their selfish enjoyment of the money that they have earned.
He explained that their "concept" of the "meaning of life" is to get married, procreate, and fulfil their duties as a child and parent. And the lower the education, the earlier the marriage.
And that being a "selfish" person in focusing on own enjoyment, he likened it to being an "employee" mindset and not "entrepreneurial".
I fail to see the link being a "boss" and being a "parent"
Oh, he is a Buddist, by the way.
And the idea that a copy of an original movie DVD can be retailing for S$0.90 a piece is mind boggling. And it converted me into a great supporter of "piracy".
Although I agree that it does not profit the original makers of the movie, I also agree that they are charging too much for an original movie. Even for software and music.
On the other hand, it is because of these cheap DVDs that I am willing to pay money to buy a movie that is not a well-known blockbuster. That I am willing to pay S$0.90 for some silly British slap-stick comedy. If it were the price of an original movie DVD, I think I would have paid for it as well, thus benefiting the non-Hollywood blockbusters.
I don't know, if I were to pay like S$0.50 to download a song I like, I guess I am very willing to pay for it, but not S$19 for an album, and S$10 for a single.
I know the concept that piracy is not good for the original owner, but the cries of my wallet is closer to my heart.
Just like at work now, I am facing the same problem. We found "pirated" goods (hardware, mind you, not a simple software that can be copied) being sold, and it impacts our business. So now I understand how it feels to be a victim of piracy.
How will I counter this ? Most probably our own retail pricing will drop, (hurray for the consumers), but other than that ? I don't know for now, will let you know once we have figured it out...
2 comments:
$0.90.
Think about it. 90 cents covers cost (i.e. manufacturing, wastage etc etc), distribution (middleman markup) and profit.
90 cents is the market equilibrium where a sustained market for pirated DVDs can exist. Compare this against the price of an original priced at say $25++ for a code 3 DVD. The price ratio is 25:1. To combat piracy, you have to get down to a ratio of under 3:1.
In a developed country like Singapore where the IP enforcement is strong, the cost of pirating a DVD is high (This is no way a pirate would able to sell a DVD at an average price of 90 cents a piece locally given the losses due to raids, police action etc etc). With proper price management, they can probably beat the pirates at their game.
In Jarkarta they can probably kiss the mass market goodbye unless they are willing to bite the bullet and lower the pricing. The lesson here is probably one of the Chinese HDCDs. You can buy an original, legal for sale only in the PRC HDCD for less than $1. Given the lax enforcement actions and massive piracy acts, the chinese market is effectively lost. Some revenue is better than no revenue so why not license some of the local companies to produce low cost copies until the legal quagmire can be sorted out?
Taking the moral angle out of the argument, Piracy is a natural market reaction to a fundamental pricing problem. The problem is that the value of an artistic goods is priced at a level deemed acceptable to the manufacturer without regards to the mass market appeal and ability of consumption of the general population.
A mass market product simply cannot be priced beyond the consumption ability of the majority of the targeted consumers. To do so would be to invite others to find a way to beat you at your own game.
As for hardware "piracy", I think the situation is worst. It not only involve revenue erosion. There is a serious possibility of brand damage and loss of consumer confidance. Lowering the price would not be a good reaction the situation IMO. There could be negative repercussions.
My suggestion would be strong legal action and education effort directed at retailers. Education directed at consumers would probably help a little but it is not cost effective. Set up a small tiger team to visit all the local retailers and see what they find. They probably will come back with a list of people to sue. Ha!
Jrt_kk
Sueing part was done a while back.
Things still continue, after a while.. :)
Indonesia.. Think about their legal system.
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