Show me people not buying significantly more at his cited price points than at their current ones, and you can make that assertion. Otherwise, it's hard to say that the market disagrees, when the market has never had a chance to voice its opinion on such prices.Like I said before, anything that is digitally delivered should be SUBSTANTIALLY cheaper than anything physically delivered. Music should be no more than $0.10-$0.25 per song and ebooks should be no more than $3 or $4.
The market disagrees.
But they HAVE experimented with altering prices; in the amazon MP3 store if nothing else, several albums lately have been sold for $5. I've even bought some of them. But we've also seen highly anticipated releases going up in price, which wouldn't happen if there were evidence that that decreased overall profits.
eBooks are still getting established, but I think MP3s are pretty clearly going to stay about where they are for the forseeable future.
Edit: and of course people would buy substantially more at those prices. The question is how much more. Server costs aren't enormous but they do matter, so you'd have to sell a bit more than five times as many MP3s at 20c a pop than you did at 99c a pop in order to make the same amount of money. Do you really see decreasing prices increasing purchasing habits fivefold?
Or, to put it another way, do you see yourself purchasing five times the amount of music if prices were decreased that much?