Originally Posted by mgkdragn
That's a stretch IMO .. and I don't know of the legality of price fixing as it relates to digital media .. gas prices within a defined area are generally very close to each other as well, however that does not indicate stipulation as such .. and, price fixing would require all content providers to all be in agreement .. unlikely ..
Colllusion between the sellers to establish a fixed price would
be illegal, but I don't think that a fixed price stipulated by the distributor necessarily qualifies.
Lots of products are offered at a seemingly fixed price. Take the Apple iPad 2 (16GB WiFi)
. Google Shopping lists 30 e-tailers offering it, only one of whom is offering it below the $499 list price (for $479); most of them want more than list (some are asking over $100 more). For another example, take the Fender Standard Stratocaster (Mexican); it lists for $699.99, but nearly everyone, e-tailers and B&M retailers, discounts it to exactly $499.99. How is such standardized pricing acheived without supplier stipulation or vendor collusion? I suspect volume pricing with a suggested retail priced allowing producing a very small retail profit margin.
On point, how is it that none of the streaming or cable VOD providers has broken rank on pricing to this point? I think that Wal Mart could possibly be free to discount VUDU streams, but only at an actual loss and that the studios would never lower their prices to make it profitable (and lowering prices to negative profits to elimination competition, I believe, is also illegal).