McDonalds' must have had the right idea when it started offering meals for a buck for other fast food restaurants were quick to follow. And today we have Redbox offering DVD rentals for a $1. And while there may be lots of steam, others will most likely be quick to follow them, too. Apple did it with the $0.99 song on iTune; I still remember when Cablevision offered the Triple Play, cable, phone, internet for $99, a price unheard of in the industry. It grew in popularity that the naysayers soon followed with similar packages. Redbox, like McDonalds, Apple, and Cablevision, has set a new standard and the consumer has embraced it. Complain as they may, this new pricing model may simply become the norm.
And so what other media companies will follow this same low price model to improve their subscription. Which newspaper or magazine will come out with a $1 an issue price, well below the normal rate. In today's economy, lower pricing may be the only way to keep subscription levels high.