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Re:Where has all the money in the world gone? by gaius on Saturday June 23, 2012 @06:11AM (#4150519)
Once you make movie A, the next million copies of movie A are essentially free. So we divide the cost of A by the number of units we expect to sell, rather than charging the full price of it to the first viewer, and giving it away to the others.

Crucially, and this is where the whole utopian post-scarcity dream falls apart, the cost of making movie B doesn't significantly depend on the cost of movie A. Because a movie isn't a "thing". Movie B is a different thing than movie A.

Re:Where has all the money in the world gone? by hxa7241 on Saturday June 23, 2012 @08:20AM (#4150675)
Ideally, for informational-goods, we first find out (somewhat) what people want, take payment, make the product, then release it for free use and copying.

The economic problem here is fundamentally one of information and cooperation. As far as we know what we want we should share the cost of producing it (i.e. production should be of what is known to be wanted, and cooperation should be on shared goals). And where we do not know (e.g. the future) we should not prevent unpredicted gains from what has been produced (i.e. by charging for copies).

The practical problem is how to get information and how to promote cooperation -- this is where possible arrangements can vary. But the core theoretical structure is that our production should follow from information, and our consumption should not be hostage to lack of information -- this is what all arrangements should try to achieve.

Re:Where has all the money in the world gone? by tempuser008 on Saturday June 23, 2012 @07:03AM (#4150565)
And then we apply the same principle to a song. Once you record the first song, the next million copies of it distributed via internet is basically free. Or is it. It would be nearly free if there were no fat cats in the middle.
Re:Where has all the money in the world gone? by gaius on Saturday June 23, 2012 @07:38AM (#4150605)
Distribution is free - but shouldn't the band be paid what they would have gotten with no record label in the way? That may mean songs on iTMS being 10p instead of 99p - don't creators of products you want deserve paying?
Re:Where has all the money in the world gone? by tempuser008 on Saturday June 23, 2012 @07:49AM (#4150622)
I don't mind paying 10 cents if that is the fair cost. I only hate the very greedy middle men.