Clement Charles

Clement Charles 's thoughts
May 11th, 2012 by Clement Charles

Of the right price of immaterial rights

In a world where the economy of rights is always more digital and dematerialized, the question of the setting of the price, and the right one, becomes central. Indeed, with the ease of access and usage of a service, the price is definitely the other key element of the purchase decision, of the choice between legal acquisition and alternative ways to obtain content.

 

In most of the economic activities, the definition of the price combines art and science. If the scientific part evaluates the costs and the margin objectives, based on data, the artistic part is based on experience, knowledge of real practice of a market and the psychology of his actors, taking into account the payment capacity of each group of clients, his particular price sensibility and his level of need of the product in question.

 

Perfect for markets or flea market, adequate to sale cars or real estate, those techniques are not sufficient any more in a digital world of immaterial rights and digital contents. New ways of organizing exchange are necessary for this exchange to last.

 

The example of iTunes Music Store shows that a good product, easy to use, with the right price, meets the public success, allowing creator to create and consumers to consume legally and without having the impression to overpay.

 

In the case of content, whether it is targeted to media or final consumers, price should be calculated according to a mix of qualitative and quantitative criteria.

 

The quantitative criteria are link to the content (size or duration of the content, the level of exclusivity), the nature of the buyer (geographical positioning, level of audience) and to the planned usage of the right (volume, nature of usage). The qualitative criteria are a lot harder to establish in a automated manner, taking into account for example the originality of a content or a credibility of a producer.

 

In the world of the press, of media and culture, an important part of the challenge of the digital revolution consists in finding the right price for each usage to identify the price that the final consumer or the professional is ready and can pay to acquire an immaterial right.

 

By pushing this logic in a complete manner, the immaterial product should have a different price for each buyer, adapted for each usage. And thus optimize our chances to be able to provide to all a legal proposition, being the only realistic alternative to illegal usage of rights.

 

 

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