I'm completely on board with everything you're saying, but algorithmic pricing is non-trivial; were it to be achieved, it would fundamentally rewrite the rules of economics as we know it.
Prices aren't decided by value or fairness, but by negotiating leverage. If Mad Men knows they're in high demand, they ask a high price or walk; if Netflix knows that a horror B-movie is in low demand, they offer a low price or walk.
Getting content owners to cede their negotiating power in either case to a universal formula will be nigh-impossible without fundamentally rewriting IP law (which for the record, I am enthusiastically in favor of).
It is my opinion that in an ideal world (ideal as in, most pleasant for humans to inhabit), pricing of video would be constant, and high demand would be its own reward through higher sales volume.
I'm completely on board with everything you're saying, but algorithmic pricing is non-trivial; were it to be achieved, it would fundamentally rewrite the rules of economics as we know it.
Prices aren't decided by value or fairness, but by negotiating leverage. If Mad Men knows they're in high demand, they ask a high price or walk; if Netflix knows that a horror B-movie is in low demand, they offer a low price or walk.
Getting content owners to cede their negotiating power in either case to a universal formula will be nigh-impossible without fundamentally rewriting IP law (which for the record, I am enthusiastically in favor of).