On 2012-03-22, Meserach wrote:
The things, is you don't get to decide what you're competing with; the consumer does. Is it unfair that you potentially unlimited entertainment is being compared against a DVD you watch once and last an hour and a half? Maybe. But if that's how people are thinking, you have to work with that and not against it (short of some kind of incredible marketing effort to convince people that what you have is a boutique product).
The most instructive comparison I can think of is to video games. For the longest time, and still today, the price point for a videogame was around $50. But in the recent years, with the internet exploding the usual costs associated with distribution, publication and retail, many videogame developers have explored far more radical - radically low - prices.
Provided (obviously) your per unit costs (printing, essentially) are such that you can still make a profit on each item - don't sell at a loss, ever - deep discounting is worth serious consideration. Especially at a con: nothing brings people in and also convinces them to actually make the purchase then offers like "50% off usual price, but only today!"