A question for economists regarding the new movie

[Eric Cheung]

One of the complaints many fans, including myself, have regarding Trek is that the price for DVDs and other merchandise is usually way above typical market value for comparable items of other shows--even used.

Since the goal of this movie is to make Star Trek's audience as broad as possible, what effect do you think achieving that goal will have on the price of the DVDs and other merchandise?

 

[Ovation]

As long as sales of such merchandise meet or exceed the expectations of the producer, they will continue to be priced accordingly. Typically, retailers have a "spread" between full price and cost and, depending on their sales philosophy, can choose to favour volume over profit per unit sold--however, it is not uncommon for those products catering to a devoted fan base to generate high volume even at high profit margins.

In other words, don't hold your breath for bargains too quickly.

(full disclosure: I'm not an economist, but I do teach intro economics from time to time)

 

[Eric Cheung]

I guess what I mean is, will the dynamic of the fanbase change? Will the people to whom the merchandise is marketed continue to be perceived as "devoted" or will it now be geared towards the general public? And if it is geared towards the general public does that imply a shift from a profit-per-unit mentality to a volume-based one?

 

[Ovation]

I wouldn't think so in the short run. If it appears that long time "devoted fans" are unhappy and sales begin to dwindle, perhaps. But, initially, this is the "new stuff" and rarely does "new stuff" go to discounting right away.

 

[Temis the Vorta]

This is really a question for marketers, not economists. Marketers set the price of products, and they set that price based on their estimation of what the market will bear.

I guess what I mean is, will the dynamic of the fanbase change? Will the people to whom the merchandise is marketed continue to be perceived as "devoted" or will it now be geared towards the general public?

Trek has always been marketed to the general public. A niche product is more like Farscape or nuBSG. The reason Berman got the boot is because he failed to hang onto the general public audience - the owners of Trek don't want it to be a paltry niche product.

The real audience for Trek DVDs is the Wal-Mart shopper. To them, Trek is just another action franchise, they might look at the racks and think "do I want Trek or do I want a Vin Diesel movie, hmm..." but as long as it gives them what they want, who cares? Not Paramount. The mass market's money is just as green as Trekkies', and there's a whole lot more of it.

If it appears that long time "devoted fans" are unhappy and sales begin to dwindle, perhaps.

The enormous purchasing potential of the Wal-Mart shopper makes the "devoted fans" just a drop in the ocean. They could all bail on the movie, but if the mass market likes it, nobody will notice.

 

[Lumen]

I expect the DVD for this film to be priced comparably to other recent action/adventure films, yes. Whether it changes current prices for already extant products is another story; I can't say I'd expect a huge resurgence of interest in TNG and DS9 DVDs as a result of this movie, so I have minimal expectations in that regard.

 

[Captain Robert April]

The problem is that Paramount does this with all their product, not just Trek.

 

[urbandk]

I have a question for economists about the new movie. How does the economy work in the new film? I don't think I've ever seen a real explanation for this post-capitalist utopia. Is there private property?

 

[Eric Cheung]

I think it depends on the version of the replicator they use in the movie: The ENT protein resequencers, the food synthesizers of TOS, or the TNG-era ones.

Depending on how pervasive that technology has gotten by Kirk's time in this version, it would dictate how much of a post-scarcity economy could exist.

 

[M'Sharak]

Is there private property?

At least an antique Corvette and a motorcycle's worth, going by the trailers.