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“Die kleinen Preise” – get people used to paying

Seth Godin criticizes the price model of the rising online video rental market. They adopt the typical price of 3$ in video rental stores even though their economy of scale is way better than those of stores. Godin would have proposed to drop the price to 50 cent in order to attract more customers (who would have downloaded illegally?) and get them used to paying. Once this habit is settled you can sell them attractive movies at a higher price.

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