http://www.physorg.com/news63350041.html

So i can pay $20 for a DRM-restricted, lower quality copy of the movie, which will not play in my DVD player. While in the time it takes to download it, i could be back from the store with a real copy. Good plan.

And to get the full quality copy (still DRM-restricted in the same way), i can pay $40 and wait even longer for the download.

Who comes up with this stuff? If i"m getting a restricted, lower quality product - shouldn"t i pay less than what i would in the store? Or maybe if it came out online a week early - that might be enough of an incentive to put up with the DRM and low quality (not for me, i"m afraid).

"Box office has been down, DVD sales have been down and the major studios are exploiting the feasibility of a new income sources"

At this point, they are testing the waters, determining what the market will do with these table scraps. They are playing a game with product quality and release time - basically the only things that have value to the consumer.

If you were them, what would you do differently to maximize sales revenue (besides the obvious approach of producing good movies)?

Well, as far as downloading, the only way they could get my business is if they reduce prices significantly. I buy an average of two or three DVDs a month. For the most part, those are movies for which i actually want a physical copy. But if i could download a reduced quality version for five or six dollars, i might be willing to purchase a few others on TOP of the ones i'm already going to buy physical copies of.

But if the price is more than that, i wouldn't be willing to put up with the product i'm receiving.

How about a purchase-points system where points accrued are redeemed towards further purchases. i.e. DRM points reduce cost of full-quality DVD/HD-DVDs and vice-versa?