Following hot on the heels of my post yesterday about Microsoft's new efforts to get legal copies of Windows installed on Founder PCs, here is another story of Hollywood studios selling affordable movies in China.

Warner Bros. was the first to do this, followed by Fox, and now Paramount is joining the group.  They will actually use Warner's distribution chain (Warner China, which must be some sort of JV if WB holds equity directly) to sell their movies.

What's the pricing? About 20-25 RMB, which I think is not a bad price to go with. True, you can buy a pirated copy for 6 RMB these days (if not lower), but then again, you can also download a copy for free. Low prices are important, but you can't ultimately compete when the price of the competition is pretty much zero.

Good quality and a reasonably low price is the key, and I think that $3 might work. WB has apparently seen some success with this already – they started about a year ago.