Prices are usually framed in terms of how much the consumer is willing to pay for a given service, and it is generally assumed that consumers have a price ceiling for a specific product. There is ample evidence, however, that for information and entertainment goods and services, consumer responses to pricing are anything but simple or linear.
Information is a product like no other.
The price of information changes the nature of information, and its resulting desirability. One example is the pricing history of the compact disc. What was surprising, though, was that the price of CDs remained high even when the cost of production fell to the point that CDs were cheaper to produce than LPs had been. Today, more than a decade after their introduction, CDs are cheap to make. Thus the producers' profit margin is significantly higher than it ever was for LPs.