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ExtraTorrent.cc > Articles > Software Developers Lowered Prices For Poor Countries

Software Developers Lowered Prices For Poor Countries

Software Developers Lowered Prices For Poor Countries

Added: Friday, November 5th, 2010
Category: Bit Torrent Freedom > The Industries Of Records, Gaming, Software, Movies
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2010, www.extrattorrent.com
Some of the software developing companies realized that it’s not a wise idea to charge US-style prices for their products in a country having a per capita GDP 7 times less than that of the United States.


One of the most controversial issues in the fight against piracy has long been the rights owners’ insistence on charging the same prices in countries living in different economic reality. For example, Apple charges the same prices for their iTunes, although it’s considered a global digital music retailer. Still, the company doesn’t care of where their customers live and how much they can actually pay for the product. This means that Malawi people, living with $800 per capita GDP, are supposed to pay just as much as the Americans boasting $46,000 per capita GDP.

Until recently, the software developers failed to realize that such approach pushed people in poorer countries to turn to piracy in order to acquire content. Meanwhile, the rights owners kept claiming that piracy led to billions of dollars in lost profits abroad, though such claims seemed more and more irrational. It’s clearly not a “lost sale” when the person has to choose between the bare necessities and the latest U2 album.

The Wall Street Journal wasn’t the first to point out that pricing is the real key to fighting piracy. Fortunately, a number of software companies, like Microsoft and Autodesk, have finally realized this.

For instance, Autodesk’s AutoCAD 2011 software was priced at $3,975 in the United States, while its prices in China were around 20%-30% less. However, even at $2800 piracy was still a more attractive option for Chinese, who had to work for months to afford the program. Finally, since Autodesk decided to set prices in China 50% less than in the United States, its sales have more than doubled.

Microsoft’s CEO for Chinese market also admits that although their margin got squeezed when they lowered prices, they still had so much room to improve that the volume made it up.

Brazil and Pakistan were among those who criticized the United States for denying that each country has a different economic reality, and recommended it to adjust its prices accordingly. Of course, half of the world, living on less than $3 a day, will have to turn to counterfeit and pirated goods whatever the prices are, but the remaining half may want to pay if the prices are reasonably lowered.

November 5th, 2010

Posted by: 

Date:  Friday, November 5th, 2010

Comments (4) (please add your comment »)

posted by Blocked (2010-11-06 04:26:53)
menahunie avatarSo it is screw the customer as claimed where they can afford it?
Say I live in USA so it is fair I pay 400.00 for an item that some one who lives in China pays $200.00?
I get paid more because it COSTS MORE TO LIVE HERE THAN IT DOES IN CHINA. Or any other country for the fact.
Damn I wish we had Star Trek transporters; I'd live in Phillipines and work in the USA for the more money..
BUT if that were the case the costs of everything would be the same due to the ability of some one to travel in an instant to work in one country and live in another..
I wonder what the judgment would have been against some one in say China for downloading 24 songs and ordered to pay 1.5 million dollars for some one in the USA compared to the amount ordered in China? $200.00 since that is fair because it is all they can afford?? NOT....
Kinda shoots a big hole in the "copyright" holders claims for losses doesn't it..

posted by Turtle (2010-11-07 13:31:30)
D4T4 avatarIn a list of the most expensive countries to live in USA comes only 13th whilst China is ranked at 10th. That's why the Chinese have less disposable income to be able to afford these "luxuries". It may be unfair to you but it's all relative. Try looking at it as a percentage of what you can afford then it all evens out.

posted by ET junkieET loverTurtle (2010-11-09 00:42:20)
fusseltier avatarfinally an article that made some sense, now if the industry would realize that some people can not afford to buy things at the same prices as in the US and europe.
look at the people in the philippines and other poor countries, some of them don't make a dollar a day.
the music and software pirates are selling this stuff in stalls right next to the police departments, and go into offices to sell music, etc. the people just can not afford to buy the originals, mainly because for some reason people in the US can't realize that not everyone lives like they do and don't make the same money.

posted by ET lovermen (2010-11-09 13:21:14)
brods73 avatarbut even in the usa and europe there are people who are poor and cant afford them!!!!

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