I stumbled across the post from AppleInsider indicating the iTunes music sales have slumped since differential pricing (higher for more recent content) was instituted. My own expenditures have been drastically reduced, but my reasons are different. I likely have far less interest in recent releases than the typical music consumer so raising the price for new content from .99 to 1.29 was not much of an issue. For me, Lala has been the difference. It is really about access over ownership. Just as it was no longer necessary to have the physical CD when I moved to music on my computer (ripping my own CDs or purchasing downloads), it is now no longer necessary to have the file on my computer. If I can access anytime I want for .10 per song, why would I pay .99 or 1.29 to own the file. I am guessing my present access/own purchase ratio is probably at least 10:1.
I have been thinking about the book market given the obvious way in which pricing models and delivery systems have influenced the way we purchase music. I am guessing I purchase a couple of books a month. Many I discard before I complete. Only a few that I read cover to cover do I consult again. Add an annual subscription to Audible and you get an idea of the amount I spend on books. If I could access at a lower price point, I would likely increase the number of books, but $40-$60 a month is about my limit. I think the issue with books is a combination of cost and time. Increasing my holdings with a useful search process might be an incentive. Unlike music, most folks must allocate both money and time to consume books. Some may purchase more books if the price was lower (offering income to more authors/publishers), but there is a second limit in the time most folks are willing to allocate. Most folks probably would not spend the time I do reading, so offering them books at half the price would not necessariy double the number they purchase. They have little interest in doubling the time they spend reading. Certain markets, e.g., education, might be responsive to new delivery systems and pricing structures, but I wonder about the consequences to recreational and trade books.
