edithhopegardenjournal

The struggle to control prices of digital content sold online continues, with producers and distributors battling over prices for downloads of books and music. In the latest skirmish, Amazon removed Macmillan books from its website after the company protested that online retail was using monopoly power to force publishers to accept prices no higher than $9.99. Macmillan and other publishers have now signed distribution deals with Apple that allows them to price downloads at $12.99 and $14.99. Producers, of course, want higher prices because they produce higher revenue and better profits. The struggle to control prices is not unique to the online environment. In the offline world, producers of books, magazines, CDs, and DVDs have long struggled to gain limited shelf space because there is a large oversupply of products and retailers’ have selection preferences for popular, rapidly selling products. Large national and retailers have also used their bargaining power to push wholesale and

Communicating regularly is hard work. It takes skill; it takes a voice; it takes having something to say; it takes time. Making money from it is even harder. The functions provided by websites, blogs, and social media clearly make it possible for people to express themselves in ways never before imagined, to share their opinions, to express their hopes and dreams, and to share the details of their lives. Media companies are watching these developments and many are rushing to provide content on any communication technology or application the public uses. Although large numbers of people are trying the new technologies, they are reacting to them in different ways. Some find them highly useful and satisfying; some find them worthless and disappointing; some find them a worthy pastime; others find them a waste of time. What this means is that—like all technologies—they are more important to some people than to others. Consequently, managers need to be realistic in assessing their potential

Increasing competition among cable, satellite, and broadband suppliers, combined with slower growth in consumer uptake because the industries have reached maturity, is leading to aggressive marketing efforts to wrestle market share from other companies. If the leading companies followed classic marketing strategies, they would be offering consumers better arrays of networks and services, better customer service, and/or better prices in efforts to attract more customers. Instead, many of the largest competitors have been engaging in acts that harm customers and consumers by using illegal and deceptive marketing practices and strategies designed to unwittingly wring greater revenue from their customers. Although the companies apparently think there are benefits in behaving badly, their marketing practices are increasingly getting them into trouble. Aggressive telemarketing—which has always offended consumers—has landed a number of leading firms in hot water. Comcast and Direct TV have ju