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Okay, let's say a copy is (essentially) free. So what? There are plenty of things that people buy where marginal cost of production is << than the price.

Concretely, why is selling a DVD with a marginal cost of production of $0.50 for $15.99 ok, but selling a movie with a marginal cost of $0.001 for $15.99 "special and different from anything that came before"?



One could argue that the dvd is an attempt to tie the information to a physical object. The dvd has no value in itself.

Whenever I have bought an optical media, i have thrown it away as soon as I had the data on my harddrive.




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