Sony Pictures layoffs explained

By Cory Doctorow at 12:07 pm Monday, Feb 8

Fred from the Electronic Frontier Foundation sez, "Paul Sweeting, one of the smartest analysts covering Hollywood's collision with the Internet, does a great job reminding us of the real reasons behind the recent spate of layoffs at Sony Pictures. 'Hitting the snooze button when the alarm goes off doesn't mean that what happens in the meantime is beyond your control. It means you're asleep.'"

The shift in consumer behavior toward rental? That was a function of wholesale pricing and the consumers' perception of value, which are entirely under the studios' control. If 40,000 supermarkets in America were selling new release DVDs for $8.99 by the checkout counter, how many consumers do you think would be lining up at the Redbox kiosk in the parking lot? How many supermarkets do you think would let Redbox on the premises?

Don't believe me? Then how is it the studios were previously able to alter consumer behavior from rental to purchase when they introduced the (comparatively) low-priced DVD to replace the high-priced VHS cassette?

Alarm bells come too late for Sony Pictures (Thanks, Fred!)